Rights of the United States to redeem for 120 days from ________________ arising out of the foreclosure evidenced by ________________ recorded __________________.
Comment: In the event of a nonjudicial foreclosure of a prior lien, the U.S. is entitled to 25 day notice of foreclosure if the federal tax lien notice was recorded more than 30 days before foreclosure. If the U.S. is not given proper notice, the lien is unaffected and must be excepted. If the U.S. is given proper notice, it still has a right for redemption for 120 days or any longer time allowed by state law.
In the event of a judicial foreclosure of a prior lien, the U.S. has a right for 120 days or any longer time allowed by state law.
The notice must contain the following information, in “simple and non-technical terms:”:
(a) a brief statement of the statute and applicable procedure relating to levy & distraint sale;
(b) the administrative appeals available to the taxpayer;
(c) alternatives available to the taxpayer; and
(d) the provisions and procedures relating to redemption and release of liens.
If proper notice was given by personal delivery to the taxpayer, no further exception need be raised.
If the notice was not delivered in person, or by certified or registered mail with receipt requested (and a copy of the receipt signed by the taxpayer is produced), the following exception will be raised:
(a) the time and place of publication;
(b) a copy of the published notice, with an affidavit of publication from the newspaper publisher;
(c) an affidavit of regularity from the official conducting the sale, setting forth the details and particulars of the sale, including the date, time and place the sale took place, identification of persons who attended, the manner of bidding used, the amount of the successful bid and the identity of the bidder.