Your income tax is subject to seizure until the request to remove the offset has been received and processed by the IRS. There is a 1-800 # that you can call to verify the status of your offset and see who is responsible for it. I think I've read that some CAs will send in the release after a certain number of months, and others wait until the rehab has been completed and the loan has been sold to a new servicer. Next year I would definitely check the hotline before you file your taxes to make sure that the offset was lifted properly, it can take some time even after the CA files for the release for the IRS to update.
As far as 9-12 months, there can be delays in getting your loan picked up by a new servicer. A couple years ago, delays of several months were very common. Lately, it seems like most rehab'd loans are picked up very quickly. If there is a delay, you are required to continue making payments to the CA until you receive information from your new servicer that they now hold the loan.
