RED

Redemption by United States

Exception

REDX01 STG

Redemption

Right of redemption for one year from _____________ in favor of the United States.
Comment: If the United States has a junior lien other than a federal tax lien, the United States may have a one year right of redemption after a judicial foreclosure. If the superior lien is foreclosed nonjudicially, the United States may assert a similar right of redemption even if state law does not create a right of redemption. This right of redemption will not exist after a nonjudicial foreclosure if the inferior lien is a HUD or VA loan unless state law also creates a right of redemption. This federal right of redemption will not exist after a nonjudicial foreclosure of a prior mortgage if the inferior lien is held by RTC or FDIC.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.