Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes
Hi BP,
10 acres Commercial property for sale, foreclosed on about 4 years ago, now owned by out of state investment company. Property has been for sale for 2 years now with a price reduction every few months. It is now very close to My number.
There is a large hwy sign in the middle of the road frontage.
In My DD I found a simple 1 page recorded Land Contract, for a small parcel that the sign is on, between the original foreclosed owner and the sign company dated 7/06. The LC is for the sum of 85k @7%, 10k down payment, with $500 per month payment. This works out to a 30yr amortization. The contract has no wording about assigns.
Assuming the LC is still binding to the sign company, where is this $500 monthly payment most likely going? If this property was mortgaged at time of LC, how would the bank have allowed this.
This area is one of My weak points in RE knowledge. Any clearing in the clouds would be appreciated.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
The mortgage probably was unaware, or maybe they released that portion. I would assume, assuming that piece IS part of the foreclosed property, any new owner steps into the shoes of the original owner/seller.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
The mortgage probably was unaware, or maybe they released that portion. I would assume, assuming that piece IS part of the foreclosed property, any new owner steps into the shoes of the original owner/seller.
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
The foreclosure would usually be subject to the lease/LC. However, there may have been subsequent agreements not recorded. There was an AT&T lease site rental for a small unmanned building. The owner was in financial trouble and re-opened negotiations and got pre-paid of a 30 year lease, at a reduced rate of course. So he collected all 30 years rent payments, and the tenant had a valid lease and had already pre-paid the rent. When the property went to foreclosure the buyer was SOL having a tenant he could not evict, and a tenant whose rent was paid in advance for 30 years.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
The LC was filed before the FC, the Trustee surely gave notice of the sale, if so, installment contacts are wiped out, treated as tenants in possession usually. If notice was not given the buyer has a claim, doesn't mean they will win. All RE is local, look to WI state law and priorities through foreclosure and claims of other parties. :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Now check the legal description of the LC, compare to that foreclosed, was the description included? If there was a lien on that parcel sold, is there a deed of release before or even shortly after the warranty deed filed? You need to see if the LC parcel was subdivided from the original property foreclosed on, if the foreclosure included the minor parcel. :)
Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes
12y
So I was mistaken. The sign company were the original owners of the 10 acres.
They subdivided a 14x60 parcel off of the 10 acres for the signage, and then sold the remainder on an $85k Land Contract to the person who was foreclosed on.
The foreclosure happened, after that person obtained commercial financing to pay off the LC.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Great, sounds much better, now the only issue might be any easement across your property to the sign, those can be some big heavy trucks, LOL, but if they are next the to roadway it's sounding good. Good luck. :)