DEAR BOB: About two years ago, my brother and I inheritedsome farmland from our late father. The property is leased to a neighbor, butthat lease expires after this year’s crop is harvested. My brother wants me tobuy him out. But I want to continue with the present arrangement, as theneighbor farmer wants to continue leasing the land. Can my brother force me tobuy him out? –Danny D.
DEAR DANNY: No. Presuming there is no partnership contractwith a buyout agreement, I am not aware how a court could force you to buy outyour brother’s half of the property.
Purchase Bob Bruss reports online.
However, either of you can bring a court partition lawsuitto force the sale of the land with the sales proceeds divided between the twoowners. If you think your brother might bring a partition lawsuit to force thesale of the property, you might want to consider buying him out now on a voluntarybasis if you want to keep the land. For more details, please consult a localreal estate attorney.
FORECLOSURE SALE USUALLY WIPES OUT JUNIOR LIENS
DEAR BOB: I was the high bidder at a foreclosure sale andgot title to a house from the foreclosing bank. However, a judgment lienholderagainst the previous owner says I owe her the $123,000 amount of her judgment.Isn’t it true that when you buy at a foreclosure sale, all other liens arewiped out? –Nancy R.
DEAR NANCY: The general rule is when you buy at aforeclosure sale, any junior liens (except property taxes) are wiped out.Priority is determined by the date of recording.
For example, if you bought at a foreclosure sale held by alender who recorded his mortgage in 2000, that sale generally wipes out anyjunior liens recorded later. However, if the judgment was recorded in 1999against the prior owner, then you bought “subject to” that judgmentand are obligated to pay it. For details, please consult a local real estateattorney.
NO EASY WAY TO CANCEL F.H.A. MORTGAGE INSURANCE
DEAR BOB: My home has a FHA mortgage for about 50 percent ofits market value. Although the FHA loan is very safe for the lender, everymonth I have to pay a mortgage insurance premium along with my regular mortgagepayment. When I inquired of FHA about canceling the mortgage insurance, whichobviously is not needed by the lender, I was told the lender can cancel thepremium at the lender’s discretion. But my lender refuses to cancel my mortgageinsurance. What can I do? –Bernice W.
DEAR BERNICE: Sorry, there is nothing you can do to forceyour FHA lender to cancel your unnecessary monthly mortgage insurance premiumif the lender refuses to do so. Of course, you can refinance with anothernon-FHA lender.
The new Robert Bruss special report, “Five Easy Ways toBuy Your Home and Investment Property for Nothing Down,” is now availablefor $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit cardat 1-800-736-1736 or instant Internet delivery at
(For more information on Bob Bruss publications, visit his
Real Estate Center).
Copyright 2006 Inman News