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Posted: May 20th, 2023
Great Land Investment Company owned vacant land that is intended to develop
Great Land Investment Company owned vacant land that is intended to develop into a residential subdivision. Great Land had borrowed money to buy the land from Big Town Bank and given Big Town Bank a mortgage on the land. Great land sells the property to Quality Homes who intends to develop the land. the land is transferred to Quality Homes "subject to" the Big Town Bank Mortgage. Quality gets into financial trouble and cannot pay the loan. Big town bank wants to sue Quality homes for the full amount of the unpaid debt. Will big town bank be successful in this action?
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