If we loan a builder 100k, he buys a lot, we get a warranty deed on that lot, he then builds a home on that lot in 45 days, the "pre-qualified buyers" end up falling through, all the subs put leins on the property for all the work they have done....
Then, can we foreclose out the builder and take ownership of the lot and home? Would all the liens be wiped out? Would that warranty deed be in first position? Could the workers come after us? Or just the builder?
Trying to determine if our 100k investment would be safe.
1 Answer from Attorneys
If your lot is in your name, you may be partially protected. Any of the subs, any other lender can foreclose against the home. You would have to bid the value of your lot at the foreclosure sale if your interest were "proveable.". Any higher bidder would have to pay you for the value of your lot. There are more things to be considered. You may call for a free consultation.
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