Foreclosure...
Can someone who is in foreclosure with a few acres of land sell part of their land to a potential buyer during the foreclosure process?
Can someone who is in foreclosure with a few acres of land sell part of their land to a potential buyer during the foreclosure process?
if you mean "during" as in before the sale actually takes place, then - sure! until a sheriffs deed is recorded from the sale, the home is still the owners'.
Yes....but in order to subdivide land you have to get approval from the city.
That is how it works in California, not sure if it varies elsewhere.
BTW: Subdividing land is not cheap or easy.
Mike
Quote:
On 2003-11-30 20:43, jackman wrote:
if you mean "during" as in before the sale actually takes place, then - sure! until a sheriffs deed is recorded from the sale, the home is still the owners'.
You are right they CAN sell it then the bankruptcy judge has the option of voiding the sale because he suspects exactly what the seller was doing, trying to make some money before going bankrupt.
Of course if he takes the profits and pays off the land well that is a horse of a different color.
You can try, but there is a very small chance that you can pull it off. First of all, you have to find out from your local government, it this lot is subdividable. If it is, you have to get permission from the current lender to release the part of the lot from the existing mortgage. The process may take 30 days or longer. Since this property is in preforeclosure, I don't think the current lender will grant you the permission.[ Edited by SmileyFace on Date 11/30/2003 ]
Sorry...the house is actually in "preforeclosure".
Quote:You are right they CAN sell it then the bankruptcy judge has the option of voiding the sale because he suspects exactly what the seller was doing, trying to make some money before going bankrupt.MrMike,
I'm sorry, but I am lost. Why is a bankruptcy judge involved in a pre-foreclosure? I don't get the connection.
Would you please explain?
No - not unless the amount of the sale is enough to satisfy the lender who holds the lien. He will want to be paid before he clears his lien from the title.