Posted on: 04th Oct, 2012 06:42 am
In Pennsylvania, if a person owns the land and has the deed to it and builds a house on the land and carries the mortgage only for the amount of the purchase price of the house b a private lender but now person is in default on the house. What can be done about foreclosure on house since the land is owned by person and the mortgage for the house only is in default? Both parties need each other, right? How would this be resolved?
Generally the mortgage will be tied to the land. So the mortgagor could foreclose on the property and take the land and the property. It depends on how the mortgage was written and what the deed includes. If it includes the land the property sits on, then both can be taken via foreclosure. Other wise, if enough value, the mortgagor can purchase the land and initiate foreclosure.
Welcome poconos,
If the loan is in default, then the lender has the right to foreclose the property. As far as the other owner of the property is concerned, the lender may give him/her a set sum of money as payment for his/her property ownership.
If the loan is in default, then the lender has the right to foreclose the property. As far as the other owner of the property is concerned, the lender may give him/her a set sum of money as payment for his/her property ownership.
