4.5 ENCUMBRANCES-FORECLOSED MORTGAGES
Problem A: Should any record of a mortgage release in the office of the County Recorder be required when the mortgaged land has been conveyed pursuant to a proper foreclosure sale?
Standard A: No.
(Effective May 21, 1953)
Problem B: Should the title to real estate be considered unmarketable if any lien thereon has been judicially extinguished but no record of its cancellation has been noted on the record of such lien?
Standard B: No. The examiner is, however, reminded of the Federal right of redemption pursuant to 28 U.S.C. §2410(c), which provides, in pertinent part, as follows:
"Where a sale of real estate is made to satisfy a lien prior to that of the United States, the United States shall have one year from the date of sale within which to redeem, except that with respect to a lien arising under internal revenue laws, the period shall be 120 days or the period allowable for redemption under state law, whichever is longer,..."
To which reference should be made.
(Effective May 16, 1957. Standard B was amended September 1999.)