Foreclosures, Mortgages & Boundary Line Adjustments.. oh my!
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Question:

Property owner owned two adjoining lots. Each lot was separately mortgaged. Owner completed a boundary line adjustment through the county, effecting an equal land trade between the two lots, but never notified either mortgage holder of the BLA. Subsequently, one mortgage holder foreclosed and took title to one of the lots. What was the effect of that foreclosure on the BLA?

Answer:

The BLA is still effective, meaning that it is still recorded and the county still acknowledges each parcel as having the property boundaries established by the BLA. However, the foreclosing lender could only foreclose on the property covered by the legal description set forth on the deed of trust, in other words, the property boundaries that existed prior to the BLA.

As a result, the foreclosing lender now owns the parcel that was foreclosed and a portion of the adjoining parcel, the portion that was connected to the adjoining parcel through the BLA. However, the bank does not own the portion of the foreclosed parcel that was added to the foreclosed parcel by the BLA....

The preceding is an opinion from Annie Fitzsimmons, the attorney who answers questions for the Washington Association of REALTORS® Legal Hotline. For additional questions or information, please contact Jen at (206) 293-1005 or send me an email to jen@jenhudsonhomes.com.

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Jen Hudson, GRI

Office: (360) 652-1200

Cell: (206) 293-1005

jen@jenhudsonhomes.com

Realtor with RE/MAX Signature