case a mortgagor of California real estate sought in his 1932 return to deduct a loss occasioned by the foreclosure of a mortgage which occurred November 24, 1931. Under the law of California the mortgagor had 12 months from the day of sale within which he could redeem the land and the redemption period had not expired when the taxpayer filed his return for 1931. The purchaser at the mortgage sale did not receive a deed for the property and was not entitled to one until after the expiration of the redemption period and the failure of the mortgagor to redeem. See Huntington v. Perrin, 65 Cal.App. 20, 223 P. 94, and Hawkins v. Com'r, 34 B. T. A. 918, 920, 921. Had the mortgagor redeemed within thatperiod he would not have received a new deed from the officer who conducted the sale under the mortgage. In other words, in the event of redemption the mortgage sale became a mere nullity and the mortgagor still held title as of his former estate and not through the mortgagee or the officer who conducted the sale, a very different situation from that in this case. Under the provision of the California law the transaction never became a closed identifiable event until after the redemption period expired. Before the expiration of that period it could not be said with certainty that the mortgage sale would ever become final and binding and the purchaser receive a deed for the property on which the taxpayer sought to deduct a loss.
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