The Multifamily Mortgage Foreclosure Act of 1981, title 12 U.S.C.A. sections 3701-3715, known as the Federal Foreclosure Act, became effective on October 1, 1981. The Act creates a uniform federal foreclosure remedy for multi-unit residential and nonresidential mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964.
A multifamily mortgage is defined as a mortgage held by the Secretary under any of the above mentioned Acts and covering any property, except a property on which there is located a one-to-four family residence.
Any such mortgage may be foreclosed by the Secretary either in accordance with the provisions of the Federal Foreclosure Act or pursuant to any other procedures available.
Do not insure under this foreclosure act without approval from the National Legal Department.