Re: new 5/27 FNMA rule, what is the redemption period in CA? TBWS says 12 mo.?

Submitted by Bob Bronte from CA - 06/09/2010 - 9:12am

As of 5/27/10 FNMA will not accept loans originated during the "foreclosure redemption period", as reported by Frank and Brian on TBWS, http://www.thinkbigworksmall.com/mypage/archive/1/51023
What is the redemption period after repossesion?

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Comments

Submitted by Sean - 06/09/2010 - 7:25pm

There is no redemption period in CA.

Submitted by Mark - 06/10/2010 - 8:24am

Hi Bob,

The IRS has a 120 right to redeem which will apply to purchases in CA, but I don't know the FNMA position on federal tax liens.

Submitted by Sean - 06/10/2010 - 9:26am

Good point Mark. I think the answer is pretty easy... you can't get title insurance during the IRS redemption period, and since FNMA would require a lenders policy the issue is moot.

Which makes me think FNMA's rule change is probably a non-issue, because I doubt title co's would insure title if there any sort of redemption period, IRS or otherwise. Maybe they just put in place this policy for states that don't allow title insurance... specifically Iowa?

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