| Court: | 9th Circuit |
| Facts: | Some housing gets built in Idaho, with funds from the feds (post WWII). Mortgages contract to waive redemption rights. The housing complex defaults. |
| Posture: | The ofreclosure happens, but the district judge applies Idaho law, which grants a 1-year period of redemption. The feds appeal. |
| Issue: | Do state redemption statutes apply when the Federal Housing Authority forecloses on a mortgage that it guaranteed? |
| Holding: | No. |
| Rule: | Idaho statute is not applicable. |
| Reasoning: | The act is supposed to facilitate dealing with the housing crisis. We can't make the FHA subject to the vagaries of each state's laws. Having equity of redemption chills bidding at the foreclosure sale: the property might deteriorate in value, and a purchaser shouldn't invest in repairs, lest the property be redeemed and that investment then be lost. The feds don't want to be in the business of holding mortgages and administering them. |
| Dicta: | |