Hello everyone,

I recently purchased a Florida property at a foreclosure auction. The property has a subordinate HUD mortgage, and the United States / HUD was named and served as a defendant in the senior foreclosure action.

The final judgment explicitly states that HUD has a 4-month redemption period. However, online sources offer conflicting information (some referencing a 1-year right of redemption under federal law versus 120 days / 4 months). Furthermore, a representative at HUD verbally indicated that HUD claims no redemption rights once foreclosed as a named defendant, and that they do not issue formal waiver letters.

Before listing the property for resale, I want to make sure there are no title exceptions or underwriting issues that could derail title insurance for a future buyer.

For those who have dealt with subordinate HUD liens after a senior auction:

• Did your title underwriter require waiting out the full redemption period (4 months vs. 1 year) before issuing a clear policy?
• Is there a standard procedure to obtain a formal release or waiver of redemption from the local U.S. Attorney’s Office or HUD?

Any insights or prior experiences would be greatly appreciated!