Title 42 — The Public Health and Welfare
Chapter 8A — Slum Clearance, Urban Renewal, and Farm Housing
§ 1475. Loan payment moratorium and foreclosure procedures
Statutory text
Moratorium
During any time that any such loan is outstanding, the Secretary is authorized under regulations to be prescribed by him to grant a moratorium upon the payment of interest and principal on such loan for so long a period as he deems necessary, upon a showing by the borrower that due to circumstances beyond his control, he is unable to continue making payments of such principal and interest when due without unduly impairing his standard of living. In cases of extreme hardship under the foregoing circumstances, the Secretary is further authorized to cancel interest due and payable on such loans during the moratorium. Should any foreclosure of such a mortgage securing such a loan upon which a moratorium has been granted occur, no deficiency judgment shall be taken against the mortgagor if he shall have faithfully tried to meet his obligation.
Foreclosure procedures
In foreclosing on any mortgage held by the Secretary under this subchapter, the Secretary shall follow the foreclosure procedures of the State in which the property involved is located to the extent such procedures are more favorable to the borrower than the foreclosure procedures that would otherwise be followed by the Secretary. This subsection shall be subject to the availability of amounts approved in appropriations Acts, to the extent additional budget authority is necessary to carry out this subsection.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 81–338 · 63 Stat. 413
Enacted · 42 U.S.C. § 1475
July 15, 1949, ch. 338, title V, § 505, 63 Stat. 434
Source evidence
Code source credit
July 15, 1949, ch. 338, title V, § 505, 63 Stat. 434Cranston-Gonzalez National Affordable Housing Act
Pub. L. 101–625 title VII § 707 · 104 Stat. 4079
Amended · 42 U.S.C. § 1475
Pub. L. 101–625 amended section catchline generally
Amended · 42 U.S.C. § 1475
Pub. L. 101–625 designated existing provisions as subsec. (a)
Inserted · 42 U.S.C. § 1475
Pub. L. 101–625 inserted heading
Added · 42 U.S.C. § 1475
Pub. L. 101–625 added subsec. (b)
Source evidence
Code amendment note
Pub. L. 101–625 amended section catchline generally, designated existing provisions as subsec. (a) and inserted heading, and added subsec. (b).Enacted provision · exact public law section
SEC. 707. FORECLOSURE PROCEDURES. (a) In General.— Section 505 of the Housing Act of 1949 (42 U.S.C. 1475) is amended— (1) by inserting “(a) Moratorium.—” after the section designation; and (2) by adding at the end the following new subsection: “(b) Foreclosure Procedure.— In foreclosing on any mortgage held by the Secretary under this title, the Secretary shall follow the foreclosure procedures of the State in which the property involved is located to the extent such procedures are more favorable to the borrower than the foreclosure procedures that would otherwise be followed by the Secretary. This subsection shall be subject to the availability of amounts approved in appropriations Acts, to the extent additional budget authority is necessary to carry out this subsection.”. (b) Conforming Amendment.— The section heading for section 505 of the Housing Act of 1949 (42 U.S.C. 1475) is amended to read as follows: “loan payment moratorium and foreclosure procedures”.
4 of 5 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments
1990—Pub. L. 101–625 amended section catchline generally, designated existing provisions as subsec. (a) and inserted heading, and added subsec. (b).
Credits
1949–1990 · 2 acts
- 1949July 15, 1949, ch. 338, title V, § 505, 63 Stat. 434
- 1990Pub. L. 101–625, title VII, § 707, , 104 Stat. 4287.
Show as published
(July 15, 1949, ch. 338, title V, § 505, 63 Stat. 434; Pub. L. 101–625, title VII, § 707, , 104 Stat. 4287.)