When does the IRS 120 day right of redemption begin to run?


#1

When does the IRS 120 day right of redemption begin to run? The date of the sale (where the successful bidder has 30 days to complete the purchase)? Or the date the deed passes to the successful bidder?


#2

Hi Lynne,
The IRS has 120 days from the date of the sale to redeem the property.


#3

While Michelle is technically correct so long as the trustees deed is filed within 15 deeds of sale, I have had title co’s not be willing to insure a transaction until 120 days after the trustees deed was recorded. Also, may be from the date of recording in other states.


#4

There are several title companies that are more conservative. They will not provide clear title insurance (for closing on a subsequent sale) until 120 days after the date of the recording of the trustee deed. Other title companies will start counting the 120 days from the date of the trustee sale.