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Foreclosure/foreclosure and septic issues

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Question
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?

Thank you

Answer
Hey Rex,

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.

Thanks
Brian

Foreclosure

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Brian Pitcher

Expertise

I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.

Experience

I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

Education/Credentials
I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

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