Encroachment on Foreclosure Property

[Nicholas J.]

Ive bought many foreclosure properties but came across a recent foreclosure that was interesting. It was pending, then came back active on the MLS. My realtor sent me the survey of the property that the potential buyers had done and ultimately backed out on. Ive been brain storming possible opportunities but thought I would see if anyone has came across something similar before. The same person owned both properties at one time. Property A and B are lake lots next to each other and Property A is now foreclosed on.

Property A - 1/2 acre lot, with a tear down home on it.  10 year old septic/drain field for this home is on Property B, which original owner still owns next door.

Property B - 1/2 acre lot, 5 year old garage on it.  Recent survey from last potential buyer shows this garage is encroaching onto foreclosed Property A by 13ft.  

Trying to create a deal on something that is scaring most buyers away.  Can the bank sell Property A with a building encroachment on it?  Property B appears to be heading to foreclosure as well from walking the property.  We've sent letters to the address on county records for Property B with no response.  If anyone has experienced something similar and has ideas they could share, I would appreciate it.  I would like to get this property or both as good lakeshore doesn't come around often.

Thank you!

  

[John Teachout]

Sounds like a split was done that shouldn't have been. Best solution overall would be to marry the properties back together.

Is the foreclosed property large enough to contain it's own septic field and could it afford selling off a strip to accommodate the encroachment? If not, there's really no value in the property as a stand alone. Another question to get an answer to is how long has the encroachment existed? If it's been decades, it may have attained squatter's rights.