What happens with the land when the home gets foreclosed?

[nojusticeforall]

Jurisdiction

Montana

Twenty acres of rural land was bought with cash and Title was transferred. Several years later the home was built by way of construction loan. The land was not used as collateral. When the home was completed, the construction loan was transferred to a conventional mortgage loan where the house was used as collateral. Facing foreclosure, will the bank get all the land too? or just the acre below the dwelling? I ask because the property tax assessment has it divided as: 1 acre beneath improvements. 19 acres of Non-qualified ag land

 

[Tax Counsel]

Twenty acres of rural land was bought with cash and Title was transferred. Several years later the home was built by way of construction loan. The land was not used as collateral. When the home was completed, the construction loan was transferred to a conventional mortgage loan where the house was used as collateral. Facing foreclosure, will the bank get all the land too? or just the acre below the dwelling? I ask because the property tax assessment has it divided as: 1 acre beneath improvements. 19 acres of Non-qualified ag land

The mortgage lien that you granted the lender only allows the lender to foreclose on the property that is described in the mortgage. So read the mortgage to see exactly what you pledged as security. Any land not included in the mortgage the lender doesn't get in foreclosure. It would have to sue you and get a judgment for what is owed to go after any assets you have that are not included in the mortgage lien. Do NOT rely on the property tax assessment records for this. Read the actual mortgage.