InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Annual Reunion Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: property on leased land Posted by Rick, the Probate Guy on February 04, 2010 at 11:06 AM In Reply to: property on leased land posted by Dan on February 04, 2010 at 2:30 AM I have made quite a few loans on property subject leased land. While I wasn't surprised when I occassionally have had requests from estates and trusts with property around the crazy-quilt leased land around Palm Springs, I've not only encountered leasedhold interests in Irvine, CA (no big surprise) but also Huntingting Beach. My mentor taught me to make certain that there was always at least 10 or more years remaining on the land lease beyond the term of the loan that I make. That way, should I end up with the property I had plenty of time to either resell or negotiate with the Lessor. Not real sure the O.P. has a handle on how a landlease works. Best to think of the landlease as superior in priority to everything except U.S.A. and property-related taxes. If you bid at the sale on a 1st TD which was made subject to a landlease, there may very well be delinquent property taxes, including superpriority code liens, AND back land lease payments. Typically, landleases call for annual payments but there's no guarantee that this is the case, nor that the foreclosing lender has advanced these costs. A smart t-sale buyer will examine the recorded landlease document(s) and not rely on hearsay. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I have made quite a few loans on property subject leased land. While I wasn't surprised when I occassionally have had requests from estates and trusts with property around the crazy-quilt leased land around Palm Springs, I've not only encountered leasedhold interests in Irvine, CA (no big surprise) but also Huntingting Beach. : My mentor taught me to make certain that there was always at least 10 or more years remaining on the land lease beyond the term of the loan that I make. That way, should I end up with the property I had plenty of time to either resell or negotiate with the Lessor. : Not real sure the O.P. has a handle on how a landlease works. Best to think of the landlease as superior in priority to everything except U.S.A. and property-related taxes. : If you bid at the sale on a 1st TD which was made subject to a landlease, there may very well be delinquent property taxes, including superpriority code liens, AND back land lease payments. : Typically, landleases call for annual payments but there's no guarantee that this is the case, nor that the foreclosing lender has advanced these costs. : A smart t-sale buyer will examine the recorded landlease document(s) and not rely on hearsay. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-date("Y"), InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455