Title company can't insure due to 2 year right of redemption

[Sunny Pyun]

Hi all. I'm about to close on a city-owned property and now the title company is saying because the property came through in rem tax foreclosure, there is a 2 year right of redemption from the date the deed is recorded. So they can't insure until April 2019. The redemption amount is the amount of tax lien plus penalties and that amount would be paid to the tax collector. Anyone experience this before? This property was foreclosed by the bank and the city. 

[Bruce Lynn]

That's the risk with tax sales.  Person who lost it often has a right to redeem, so no title company will issue insurance in the meantime.

You can rent it month to month in the meantime.

You can leave it vacant.

You can live in it.

You can sell it to some other investor without title insurance and a clause to warn them about the redemption rights.