Release of Right of Redemption

The Small Business Administration (SBA) asked GAO to issue a certificate of release of lien. SBA held a second mortgage, the original owners defaulted, and the mortgage company initiated foreclosure proceedings. The record indicated that the mortgage company was the highest bidder at the foreclosure and purchased the property. GAO does not have authority to issue a certificate releasing the right of redemption accruing to SBA on behalf of the mortgagee who purchased the property at the foreclosure sale. However, SBA may release the right of redemption in consideration of monetary payment by the property owner.