HUD home with double lot, but one lot not transferred.

[Stephanie Medellin]

I came across a HUD home for sale, and then looked up the property history in the MLS. The last listing said that the property had a double lot with 2 separate deeds, and the vacant lot was build-able. I then researched the property taxes and discovered that the other lot was not owned by the lender / HUD, but a 3rd party. The house was also transferred to this 3rd party first, before being transferred to the bank and then to HUD. The vacant lot stayed in the name of this 3rd party. The 3rd party is an LLC, but when I look up the mailing address for the LLC it's just a house. Could this be a trustee or attorney that helped with the foreclosure?

I have heard of foreclosed property with 2 lots not being foreclosed together, with the owner retaining ownership of the secondary lot.

If I decide to make an offer on the property, especially with the HUD contract, how would I even make it contingent on getting that second lot?

[Greg H.]

The reality is your cannot. With HUD purchases, you use their contract and it can't be modified in any way for any reason. In fact, the HUD contract does not even reference a legal description at all but just the address. And no, you will not be able to force them to include the additional lot based on the physical address

Search the county records and find out the legal description of what was mortgaged initially.  Then compare it to the legal of what was foreclosed on as they should match.  That is what you will be purchasing.  It is not uncommon in a double lot situation for the additional lot to have been handled in a separate transaction that may or not be mortgaged.  Being offered together at a later time to be sold together does not matter

What you do know is when the buyer purchased the property using an FHA loan, there was a survey and title policy along with proper access to the property and the ground below the house was conveyed barring an error which is not likely