The underwriting requirements for foreclosed property vary from state to state, depending mainly upon the extent to which state courts allow the overturning of foreclosure sales in the case of failure to meet statutory/contractual requirements. If you are not aware of the acceptable practice for your jurisdiction, please contact your Agents National Title underwriting counsel for guidance.
When relying on notice to extinguish and IRS Lien, the agent must obtain evidence of personal service of notice of the foreclosure to the Director of the Internal Revenue Service in the form of certified mail return receipt.
If the United States holds a Right of Redemption, include the following exception:
The right, if any, of the United States to redeem said land with (“120 days” if foreclosure was a nonjudicial sale pursuant to a mortgage or deed of trust; otherwise, insert the period of time permitted junior lienors to redeem under local law) from the date of sale held on ________ as provided for in 26 U.S.C. 7425.
If another party holds a Right of Redemption, include the following exception:
The right, if any, of _____________ to redeem said land within _________ days from the date of sale held on as provided for in _________.