vacated alley?

[Bhood]

I live in Indiana and own a business. Two years ago the person who owned the property paralell to me decided that they wanted a alley vacated between two houses that he owned so that he could sell to a business. We agreed to let him vacate the alley as we did not use it. He had purchased one of the houses before the vacation of the alley from an individual. He took a loan out at a bank and used all three houses for collateral, consequently he did not pay the loan and the bank foreclosed. At the time of the loan the alley was not vacated, only after the loan did we allow it to be vacated. Now the bank has foreclosed and someone else has purchased the property. I saw in the paper last nite where the individual that sold the man the property tranfered the vacant alley to his niece. My question is this. Since he lost his homes due to foreclosure and the alley was vacated before the foreclosure doesn't the ground go back to the properties on each side of the alley and if so doesn't the new owner own the vacated alley now. Also if the new owner wants it opened and we agree can it not be reopened
Thanks

 

[HomeGuru]

I dont know. You would need to review the foreclosure Trustee deed legal description to see if the land sold includes the subject area.