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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33732
Experience:  15 years real estate, Realtor. Landlord 26 years
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If you bought land and paid cash and then chose to build a

Customer Question

If you bought land and paid cash for it and then chose to build a house on the land and paid cash for that as well and years later borrowed against the house and you were unable to repay the loan/ mortgage, and the house was then foreclosed on, does that mean I lose the land as well
Submitted: 1 year ago via Cornell Legal Info Institute.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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This would depend on whether the lender made the loan on both the structure on the land and the land as well. But I have never seen a lender make a loan on just the structure unless it was a mobile home that is movable because they can't pick up a permanently attached house from the land and just foreclose on it.
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So I would opine that there is virtually no chance that the lender didn't encumber the land as well as collateral for the loan and if a foreclosure occurs, it would be on land and structure.
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thanks
Barrister
Customer: replied 1 year ago.
Even though this was two separate transactions?
Expert:  Barrister replied 1 year ago.

Generally yes, but you would need to check your original loan documents to make sure that the land was included as collateral along with the house. But in 15 years of practicing real estate law, I haven't seen a lender omit the land that a house was sitting on from being collateral when they were making a loan..

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thanks

Barrister

Customer: replied 1 year ago.
Ok and if the land was not included what would that mean if they have already foreclosed
Expert:  Barrister replied 1 year ago.

Well, then legally they would just have the right to own the house and would have to sue you separately for any deficiency, get a judgment, file a lien on the land, and then foreclose on the land to force a sale so they could buy it so they would have both land and house together so they could sell it to try and recover their loss.

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thanks

Barrister

Customer: replied 1 year ago.
Ok, thank you.
Expert:  Barrister replied 1 year ago.

You are very welcome. Glad to help any time..

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If you feel your original question and any related follow ups have been answered, I would very much appreciate a positive rating on the answer I have provided so I receive credit for my work. If you have a new question the JustAnswer folks require that you start a new question page, but you can request me by putting "For Barrister" in the caption and they will get it to me.

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thanks

Barrister

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