Drain field on different lot

[wheatbeat]

What is the name of your state? Michigan

We purchased a home that included an adjacent vacant lot. The drain field on the lot on which the house sits went bad. A new drain field was installed on the adjacent vacant lot. The house uses the drain field on the adjacent lot. This was the setup at the time we purchased the home.

We later split the house and the vacant lot into separate pieces of property. The house still uses the drain field on the vacant lot. The home is now being foreclosed on. I am planning to file chapter 7. I do not wish to keep the home or the vacant lot. There is virtually no equity in either the home or vacant lot.

Question: How will the creditors on our home mortgage (we have a 1st and 2nd mortgage on the home) handle this situation when it reposses the home and then attempts to sell it? How will the creditor on the vacant lot loan handle this?

Thanks in advance,
Brian

 

[HomeGuru]

What is the name of your state? Michigan

We purchased a home that included an adjacent vacant lot. The drain field on the lot on which the house sits went bad. A new drain field was installed on the adjacent vacant lot. The house uses the drain field on the adjacent lot. This was the setup at the time we purchased the home.

We later split the house and the vacant lot into separate pieces of property. The house still uses the drain field on the vacant lot. The home is now being foreclosed on. I am planning to file chapter 7. I do not wish to keep the home or the vacant lot. There is virtually no equity in either the home or vacant lot.

Question: How will the creditors on our home mortgage (we have a 1st and 2nd mortgage on the home) handle this situation when it reposses the home and then attempts to sell it? How will the creditor on the vacant lot loan handle this?

Thanks in advance,
Brian

**A: simple, the mortgage secures both lots so the property will be sold as two lots together.

 

[wheatbeat]

State: Michigan

No, there is a separate mortgage on the house and a separate mortgage on the lot. Initially, they were on the same mortgage, but we later split the lot from the home. Thanks

 

[HomeGuru]

State: Michigan

No, there is a separate mortgage on the house and a separate mortgage on the lot. Initially, they were on the same mortgage, but we later split the lot from the home. Thanks

**A: what? If the mortgage was on both properties, "splitting the lot from the home" does not split the mortgage. Your post is vague and ambiguious.

 

[wheatbeat]

The original mortgage was for a house and a vacant lot as one piece of property. We later refinanced the home, splitting the lot off as a separate piece of property. We now have a mortgage on the house (with a second mortgage as well) AND a separate loan on the vacant land.

However, the lot still contains the drain field that the house (on a separate piece of property) uses. Hope this helps clarify the situation.

Thanks

 

[HomeGuru]

The original mortgage was for a house and a vacant lot as one piece of property. We later refinanced the home, splitting the lot off as a separate piece of property. We now have a mortgage on the house (with a second mortgage as well) AND a separate loan on the vacant land.

However, the lot still contains the drain field that the house (on a separate piece of property) uses. Hope this helps clarify the situation.

Thanks

**A: Ok thanks, but now I forgot what the original question was. Anyway if you are filing BK and abandoning both properties, why do you have concerns about your lenders?

 

[wheatbeat]

Thanks for your patience ... I realize this is a screwy situation.

To summarize so far, the house uses a drain field on a separate piece of property (the vacant lot).

I am curious if this is going to cause any legal matters when the lender that holds the lien on the house realizes this to be the case.

Again, I am being foreclosed on and will be filing chapter 7.

Thanks

 

[HomeGuru]

Thanks for your patience ... I realize this is a screwy situation.

To summarize so far, the house uses a drain field on a separate piece of property (the vacant lot).

I am curious if this is going to cause any legal matters when the lender that holds the lien on the house realizes this to be the case.

Again, I am being foreclosed on and will be filing chapter 7.

Thanks

**A: no but since you own both properties, you could always record an easement allowing the existing set-up and making it legal.
If you are concerned, let your lenders know and have them pay their attorney's to complete the paperwork.

 

[wheatbeat]

Thanks for your help

 

[HomeGuru]

Thanks for your help

**A: no problem. I am glad that we finally resolved the issue. I'm beat from the wheat.

 

[wheatbeat]

you have been beaten into a catatonic state.