Land Foreclosure - How Done?
Land Foreclosure - How Done?
My friend in the boonies says that if you take out a loan, say for $1k, from a bank or micro, put your land for security and you don't pay, the lender can simply post some kind of sign or notice on the land and take it or sell it privately to a 3rd party.
So if the land is worth substantially more than $1k, the borrower gets nothing from the sale. And there is no way for buyers to competitively bid for the land.
Is this correct?
So if the land is worth substantially more than $1k, the borrower gets nothing from the sale. And there is no way for buyers to competitively bid for the land.
Is this correct?
- Duncan
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Re: Land Foreclosure - How Done?
Well if your friend knows anything about loans,, he would also point out that if you cannot save $1k in the leadup to wanting this money,,, then one has no hope of saving money to pay back the $1k ,, plus interest..Otis wrote: ↑Mon Jul 03, 2017 4:17 am My friend in the boonies says that if you take out a loan, say for $1k, from a bank or micro, put your land for security and you don't pay, the lender can simply post some kind of sign or notice on the land and take it or sell it privately to a 3rd party.
So if the land is worth substantially more than $1k, the borrower gets nothing from the sale. And there is no way for buyers to competitively bid for the land.
Is this correct?
Morel of the story is DONT BORROW MONEY.
Cambodia,,,, Don't fall in love with her.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
- bolueeleh
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Re: Land Foreclosure - How Done?
legally the MFI have to produce the following documents, loan agreement, payment schedule (that shows loaner behind in payments) and letter to foreclose property. The correct procedure is to go commune then province municipality then finally court to obtain foreclose warrant, but.....
knowing the loaner would not have any means to fight back, just give the local municipality some tea money and you can ahead with the foreclosure.
i have never done any foreclosure before (thankfully wont need need to) but usually the threat of foreclosure is enough to get anyone back on track, usually they would just go to another MFI to get another loan to cover it back
knowing the loaner would not have any means to fight back, just give the local municipality some tea money and you can ahead with the foreclosure.
i have never done any foreclosure before (thankfully wont need need to) but usually the threat of foreclosure is enough to get anyone back on track, usually they would just go to another MFI to get another loan to cover it back
Money is not the problem, the problem is no money
Re: Land Foreclosure - How Done?
Thanks bolueeleh for the briefing about the procedure.
Specifically, if the land is worth substantially more than the amount of the loan plus accumulated interest, does the bank have to give the defaulting borrower the overage? Is there a law saying that the bank has to sell the land at something like public auction? Or can the bank just keep all the excess value and the borrower gets nothing from any sale or forced conveyance?
Specifically, if the land is worth substantially more than the amount of the loan plus accumulated interest, does the bank have to give the defaulting borrower the overage? Is there a law saying that the bank has to sell the land at something like public auction? Or can the bank just keep all the excess value and the borrower gets nothing from any sale or forced conveyance?
- bolueeleh
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Re: Land Foreclosure - How Done?
i think you already know the answer to this question, bank will never disclose or be honest enough to disclose the real transacted price, if i were the "manager" of that case, i would ask my "trustee" to buy that land at super discounted price and sell it off later for a good profit, that is, if it were up to me.Otis wrote: ↑Mon Jul 03, 2017 10:33 am Thanks bolueeleh for the briefing about the procedure.
Specifically, if the land is worth substantially more than the amount of the loan plus accumulated interest, does the bank have to give the defaulting borrower the overage? Is there a law saying that the bank has to sell the land at something like public auction? Or can the bank just keep all the excess value and the borrower gets nothing from any sale or forced conveyance?
Money is not the problem, the problem is no money
Re: Land Foreclosure - How Done?
bolueeleh wrote: ↑Mon Jul 03, 2017 1:09 pmi think you already know the answer to this question, bank will never disclose or be honest enough to disclose the real transacted price, if i were the "manager" of that case, i would ask my "trustee" to buy that land at super discounted price and sell it off later for a good profit, that is, if it were up to me.Otis wrote: ↑Mon Jul 03, 2017 10:33 am Thanks bolueeleh for the briefing about the procedure.
Specifically, if the land is worth substantially more than the amount of the loan plus accumulated interest, does the bank have to give the defaulting borrower the overage? Is there a law saying that the bank has to sell the land at something like public auction? Or can the bank just keep all the excess value and the borrower gets nothing from any sale or forced conveyance?
Is there anything like an publicly held foreclosure auction or other open bidding process?
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Re: Land Foreclosure - How Done?
More hearsay and speculation.
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