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Updated over 5 years ago,
Foreclosure with a U.S.C 2410(c) clause - looking for help
I am in closing for a foreclosed property in Cincinnati, OH and during the title process, the title agency brought this exemption to my attention in particular since it was atypical:
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The subject property was acquired through a foreclosure action where the United States of America was a named Defendant. Per the Confirmation Decree the property is subject to the right of redemption per USC 2410(c). Period of redemption for the United States of America is one year from the date of sale (May 21, 2019). A release of the right of redemption may be acquired from the local United States Attorney's office.
From the case summary (where the property was foreclosed on by the bank), there is a lot of detail about whom gets paid out what amount, and then the last point is:
"16. There shall be no further equity of redemption, except that with respect to any interest held by the United States, the United States shall have the right to redeem within the time period provided by 28 U.S.C. 2410(c)"
From reading the code, it looks like I would retain title and if the USA exercises its right of redemption within a year, I would be reimbursed the purchase price + some interest + some fees. If I wanted to sell or refinance within the right of redemption period it would be difficult since the title is clouded.
The relevant US Code 2410 is here, and after discussing it with the title company and calling the Ohio US Attorney's Office, I'm reaching out here to see if anyone else has encountered this and what their experiences/findings were. I am looking for discussion, not for legal advice. Thank you in advance!