Does anyone know how golf equity works in a trustee sale. It seems to me that if I was an owner and paid, let save 50k equity and I have the right to sell it when I sell the house it should carry unless it’s tied to the owner. So the question is, does the equity remain with the house or is it abandoned at trustee sale?
We do not cover FL and I have not personally heard the term “golf equity”. In most cases when a lender forecloses on a property the equity is wiped out. If you wanted to protect your interest you would sell the property prior to the foreclosure. If the property is bid up at the foreclosure sale and the amount paid is over the amount due on the foreclosing loan then that amount would be used to pay any other liens or should be returned to the owner.
You will want to check with a professional in Florida to confirm this information.
Michelle: Thanks, however I am not an owner just an investor who has bought many properties at foreclosure sale and trying to see if a loophole exists. In Florida, many of the golf course communities require that an equity golf membership be purchased when a home in the community is purchased. Many have fees of 20k to 1 million. This is an equity membership in which you own a specific percentage of the golf course, It is considered chattel and most lenders will not finance this. Because of the significant membership fee, the home prices are often lower. I need to find out what happens to this membership, because if it conveys with the foreclosed house it could be a big benefit because the bidders here are normally going 75% of accessed.
Thanks for the info Stephen, I had not heard this term before! I know that in any foreclosure it is the deed of trust that is being foreclosed on not the property. I would guess that if a golf membership is being used as security for the deed of trust along with the property it would be listed in the deed of trust as additional collateral. Since I have not seen one of these that would be where I would start. If the golf membership is not listed on the deed of trust then it would be doubtful that it would be included.