Can a lender take a building during foreclosure on my refinanced property?

Full question:

I have a piece of property in Florida that I refinanced in 2005, I also own the property beside it. When the appraisal was done they included a building that is on the owned property. My mortgage states only the parcel number and legal description of the refied property. If my mortgage goes in forclosure will the lender be able to take this builing that is on the property that I own?

  • Category: Real Property
  • Subcategory: Foreclosure
  • Date:
  • State: Florida

Answer:

If a lender has a lien on your property, they can typically foreclose on both the land and any buildings on it. Generally, a deed describes the land, not the buildings. If your loan was based on an appraisal that included the building and the lender has a secured interest in the property, they likely can foreclose on the land and the building if you default on payments.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Not always. Whether a refinance requires a new appraisal depends on the lender's policies and the type of refinance. Some lenders may waive the appraisal requirement if you have sufficient equity in your home. However, if the lender needs to assess the current value of the property, they may require a new appraisal to determine the loan amount and terms.