Title Examination Standards
Chapter 1, App.
Chapter 31. Federal Nonjudicial Mortgage Foreclosure.
§31.1. Single Family Foreclosure Act of 1994.

1. 1. Notice of Default and Foreclosure Sale ("Notice"), which Notive must be filed with county clerk not less than twenty-one (21) days prior to the foreclosure sale, and must set out the information specified in the Act, including information regarding:

   a. the name and address of the foreclosure commissioner; and
   b. the date the Notice is issued: and
   c. the names of the HUD Secretary, the original mortgagee, if not the Secretary, and the original mortgagor; and
   d. the street address and legal description of the property; and
   e. the date of the mortgage: and
   f. the book and page of recording of the mortgage and the office in which recorded: and
   g. a description of the default upon which foreclosure is based; and
   h. the date, time and place of the foreclosure sale; and
   i. a statement that the foreclosure sale is conducted pursuant to 12 U.S.C. §§ 3751, et seq.; and
   j. a description of costs to be paid by the purchaser upon conveyance of title; and
   k. the amount and method of deposit required at the foreclosure sale and the time and method of payment of the balance of the purchase price.

2. 2. Deed executed by the foreclosure commissioner to the purchaser.

3. 3. Affidavit containing certain recitals required by the Act (unless the recitals are set out in the deed to the purchaser, as allowed by the Act), which recitals must set out:

   1. a. the date, time and place of the foreclosure sale, which sale msut be a public auction to be held between 9:00 A.M. and 4:00 P.M. and shall be conducted within the county where the property is located at the place where real estate auctions are customarily held, or at a courthouse or at the site of the property; and
   2. b. that the mortgage was held by HUD; and
   3. c. the date of the mortgage, together with the book and page of recording and office in which the mortgage was recorded; and
   4. d. the particulars regarding service of the Notice, which Notice must be sent by the foreclosure commissioner, to the parties designated in the Act, by certified or registered mail, with return receipt requested, not less than twenty-one (21) days prior to foreclosure sale; and
   5. e. the date and place of filing of the Notice; and
   6. f. a statement that the foreclosure was conducted in accordance with the provisions of the Act and with the terms of the Notice; and

   7. g. the sale amount.

      Authority: 12 U.S.C. §§ 3751, et seq.

      Comment: The Act deems the service of the Notice to be sufficient, whether or not received by the addressee and whether or not a return receipt is received or the Notice is returned. 12 U.S.C. § 3758(2)(c).

      Comment: Although the Act requries publication of the Notice in a newspaper of general circulation in the county once each week for three consecutive weeks prior to the foreclosure sale, the Act does not require recordation of the publisher's proof of publication of such Notice.

      Comment: A purchaser at the foreclosure sale is presumed to be a bonafide purchaser. 12 U.S.C. § 3763(d).

      Comment: No right of redemption exists folowing completion of the foreclosure. 12 U.S.C. § 3763(e).

      Comment: The TES Committee, as of the date of creation of the above title examination standard, is not aware of any court decision determining the constitutionality of the Act.

      Comment: A separate act for federal nonjudicial mortgage foreclosure exists for multi-family property entitled "Multifamily Mortgage Foreclosure Act of 1981." 12 U.S.C. §§ 3701, et seq .
      

The title examiner should consider a federal nonjudicial mortgage foreclosure proceeding, regarding a mortgage covering a one- to four- family residence and held by the United States Secretary of Housing and Urban Development ("HUD"), to have been completed in compliance with the Single Family Foreclosure Act of 1994 ("Act") if the following have been recorded in the office of the county clerk in the county in which the land is located:

The 1998 Report of the Title Examination Standards Committee recommended this new Standard as a result of Congress' adoption of 12 U.S.C. § 3751 et seq. and its use in Oklahoma by the U.S. Department of Housing and Urban Development. 69 O.B.J. 3476 (October 17, 1998). The Real Property Law Section approved the Committee's recommendation on November 12, 1998 and the House of Delegates adopted the standard on November 13, 1998. 69 O.B.J. 4166 (December 5, 1998).