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".