Foreclosure/foreclosure and septic issues
Several years ago I bought 9 acres to build a house on. I am currently making payments on the 9 acres. After paying for about 2 years, the original owner released to of the acres so I could own those two acres outright and build a house. I built the house on the two acres, but put the leach lines outside of the two acres, on the remaining 7 acres that I am still making payments on.
I am now looking at losing the house and two acres to the bank. But the septic system remains on the 7 acres that are not yet paid for.
When the bank gets the house, can we cut them off from their septic system? Can we sell them the remaining 7 acres at market value so they can get their septic system with the house. Can they come after us for putting the septic system outside the property we owned? Can you give me some scenarios of what the most likely outcome of this will be?
Good question. If the home forecloses with the 2 acres then you will no longer own it. You have the right to cut off the septic system on your 7 acres. The buyer of the house from foreclosure whether that be a bank or an investor will have a choice to negotiate with you to buy your 7 acres or just a piece of your 7 acres. Or he can abandon those leach lines and find another place to put them on his 2 acres. The home will be inhabitable if one of these remedies doesn't take place. If the bank/investor determines that you were malicious or that you are taking advantage of the situation then they can sue you for the damages caused by not having a habitable home or to make you sell just the leach lines section for fair market value. These are the most likely outcomes but there could be others. A real estate attorney could go more in depth with you for your state. not all states will treat that situation the same.
Hope that helps.