Help for Buyer of waterfront property that has lost frontage due to Damn water release...
Situation: Buyer purchased lakefront property on land contract with 121' frontage. They have been making payments for 3 years. This spring water was release from a Damn to help protect "cricket Frogs" in the area. Now the land has only 74' of frontage and Buyer can no longer build the home they had planned to build. Furthermore, current setback rules will only leave about 14' of buildable area, thus it may not be possible to build at all!
1. What options are available to buyer? They already have about $100k invested in property. They do not want to walk away, but may not have a choice..
2. If they decide to keep property, can they renegotiate land contract terms?
3. Seller has existing mortgage. What are chances of short sale with 1st mortgage?
4. If determined unbuildable, can Buyer Sue the Seller for non-disclosure, and have investment refunded?
5. Any other ideas?
I feel Buyer should get new appraisal if interested in keeping property and offer to amend land contract to current market value pricing. Will likely be 50% of original purchase price.
Any comments appreciated...