I have a buyer for the lot at $170,000. However, the lot is in the foreclosure process, no final judgement maybe by May 1, 2013. My questions' are the following:
The private note on the land is for $120,000, if I sell the lot for $170,000, do I get to keep the $50,000 profit.
Or can the private lender stop the sell until I pay; back interest, property taxes and attorney fees' (Around $28,000)?
Or does the private lender have to sue me for the above in civil court?
Answer
You need an attorney familiar with foreclosures and sales to assist you. The lender has a pending lien and anyone who pays you should insist on clear title and that would require a satisfaction of the underlying mortgage including all the costs and attorney's fees, interests, property taxes which have been paid. If that does not occur and you provide a warranty deed, the title will likely be flawed and you are subject to being sued later on. It is much better to resolve these matters up front.
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