Moving a House?

Question

Through a major screw up, my Sister has found out that her home, a BUILT home, not a mobile home, is seventy feet on another persons property. The bank that hold's the mortgage admit';s the error is their fault. (She paid title search, survey, etc.) The owner's of the land won't sell, so the bank's offer is to move the home 100 feet over. I say it's a bad, bad idea. What do you think?

Answer 1

I would try to avoid moving the house if you can. It can be done successfully but still represents a risk to a slue of future problems. The reason the bank offered this option is because it is the lowest cost option that exists. Despite this issue, your sister is sitting pretty because it isn't her fault and can sue those whose fault it is for actual costs and punitive damages and since we are talking about real estate, and every piece of real estate is unique, we are talking about big money! Errors and omissions insurance is carried by those involved for this type of situation.

Answer 2

It's DEFINITELY a bad idea. It can cause waaaay more issues than you'd like to know-- cracked wallboard, walls, floors, pipes, etc. It can be done of course, people do it all the time, but not without financial assistance from the bank.

Most people get TITLE INSURANCE for this very reason, and it covers stuff like this. Contact the title company that did your closing.

Find out if the owners of the adjacent land will sell just a right of way for that segment that her house is on. If the house has been there for more than 7 years, you can also try and sue for adverse posession in the court of law, and quite possibly win. I'd flash that possibility in front of the neighbors with the option of a court date OR cash for the right to use their 100 feet.

Answer 3

If done properly by a pro, it's one solution; generally low risk.. The title insurance company is probably going to stand firm on that resolution. The incentive for your sister is that they'd only buy out the purchase price, not the present value so she'd lose any equity.

A consultation with an attorney is clearly in order.