Skip to Content.
Sympa Menu

homestead - Re: [Homestead] land prices!

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] land prices!
  • Date: Sun, 6 Nov 2005 12:07:49 EST



> They had a land auction Friday for 700 acres of land on hwy 101,
> zoned for commercial and housing. It was sold by the courts when
> someone didn't pay for it, the original lender bought it for just
> over $25K an acre... an acre!
>

Rob, if it was the original lender, he might as well have paid $25 million an
acre, it would have been little difference. In most states when a lender
forecloses on land, je can't legally just seize the land. It must be
auctioned
off. To prevent the land from selling to a thrid (or would it be second)
party
for $2K an acre and the lender being screwed, he takes possession of the land
by bidding absurdly high. He's just bidding to pay himself, so what does it
matter what he bids. Then in full legal possession of the land once more, he
can then sell it or develop it as he sees fit.

Some land prices are that crazy, that's beginning to change now that the
bubble is near bursting, but taking back possession of land on which you hold
the
note is not a good indication of what land woudl sell for in an arm's lenght
transaction.




Archive powered by MHonArc 2.6.24.

Top of Page