Join Date: Apr 2012
Location: Your House Soon...Soon
Thanked 2,249 Times in 1,094 Posts
Specifically regarding your situation, you should submit an invoice for your work immediately. It sounds like from your description that the debris you removed was only from the front parcel. Before pics would have confirmed that. If you have written authorization to do the work from the lender or their agents, you are entitled to compensation.
As to the dispute over the property, it may depend on what parcel(s)the lender has filed claim against. If there are actually two parcel numbers, and only one is held as collateral by the mortgager, then the in laws may have "rights" to possession of the rear parcel. However, a quit claim deed has to be filed with the county recorder so there is a verifiable trail. And just because the previous owner signed ownership over to someone else does not relieve them of the duty to payoff debts on the land. Tom can't buy a new truck and then sign it over to Dick, telling the finance company it is their problem now. Banks are not bound by quit claims; they are bound by the money owed.
This is what title companies are for, why there is title insurance and why the term "due diligence" is important.
I've run into your situation numerous times. I have witnessed lenders having to buy puzzle piece parcels in order to make the property whole. Investors buying the driveway and garage but not the house, then waiting for the bank to come to them.
I saw a large pole barn dealer arrive on a previously foreclosed 12 acre parcel once and with a court order remove a 40x70 outbuilding while the new owner hurriedly removed his personals.
The lady may rightly own that piece of property and this is her way of sticking it to the bank or she could simply have been bsing everyone, including herself, and was trespassing.