Parceled off to Sign co. on Land Contract, what happens after Forclosure

[John Adamkewitz]

Hi BP,

10 acres Commercial property for sale, foreclosed on about 4 years ago, now owned by out of state investment company. Property has been for sale for 2 years now with a price reduction every few months. It is now very close to My number.

There is a large hwy sign in the middle of the road frontage.

In My DD I found a simple 1 page recorded Land Contract, for a small parcel that the sign is on, between the original foreclosed owner and the sign company dated 7/06. The LC is for the sum of 85k @7%, 10k down payment, with $500 per month payment. This works out to a 30yr amortization. The contract has no wording about assigns.

Assuming the LC is still binding to the sign company, where is this $500 monthly payment most likely going? If this property was mortgaged at time of LC, how would the bank have allowed this.

This area is one of My weak points in RE knowledge. Any clearing in the clouds would be appreciated.

Thank You, John

[Wayne Brooks]

The mortgage probably was unaware, or maybe they released that portion. I would assume, assuming that piece IS part of the foreclosed property, any new owner steps into the shoes of the original owner/seller.