Bank owned foreclosure

[beans31]

I recently purchased a bank owned foreclosure that had a solar city solar system on the roof. The bank had "no" knowledge about the system (right before we closed we found out that the panels were leased). The bank told us to consider them fixtures and that we owned them. Our title came back clean and all liens having to do with the panels had been wiped out in the foreclosure. We received a generic letter from tesla addressed to "current home owner" stating we had to sign a lease or they would come take the panels. Has anyone else dealt with this?

[John_Dumke]

I am not a lawyer, so take everything I say with a grain (or the whole salt shaker) of salt, but I would suspect that you have claim to them. The lease was with the previous owner and attached to the property. It would then transfer to the new owner, if the property didn't go into foreclosure. But the foreclosed loan being in place before the lease, may wipe out the lease agreement as it pertains to the property because the lease is subordinate to the lien. So the solar company's sole recourse may be to only go after the previous owner. The previous statement about the foreclosure wiping out the lease is only my best guess as a California Real Estate Broker and should not be considered legal advice.

You purchased a property and all of the attached fixtures are real property and included with the sale. It is likely that you have a greater claim to the solar panels than the solar company. I would spend a lot of time reading up on the law. It could come down to what state the property is located.

Let us know what your research shows. Until I had read up on everything that was available, I would assume they are yours and keep the solar company off the property.

But Wait........ This article below says stuff about Fixture Filing as it applies to California. And that you may not own the panels.

https://www.swlaw.com/blog/real-estate-litigation/2016/11/24/green-energy-can-complicate-real-estate-foreclosures/

Knowing the state you are in would be critical. And knowing exactly how the Solar Company protected their interest will be critical.

Keep us posted! What state are you in?

[John_Dumke]

It will be very dependent upon state law, and likely also the type of foreclosure. The most important person you can speak to will be the title officer of the title company that insured the title on your transaction. This is the person that I would get the number to first. He maybe able to shed some light.

You can likely get some free advice / insight into this situation, as they are the ones that would be on the hook should anybody file a title claim.

[daniel13]

Here's a previous thread about a similar situation:

https://www.solarpaneltalk.com/forum/solar-panels-for-home/solar-panels-for-your-home/13790-purchase-or-pre-paid-lease-of-4-year-old-solar-system

[peakbagger]

Great news. Why do I think this is not over with Tesla

[Ampster]

So there were two ucc-1 lines on the house, but were wiped out in the foreclosure. Our title came back free and clear.

UCC filings used to be referred to as chattel mortgages. If your title is clear then have solar city contact whomever issued the clear title report.

[Mike90250]

Oh I am sure it is not over with Tesla, but at this point in time they have sent us two letters to "current home owner" and I tried to call the woman back who wrote the letter yesterday, and go figure she is no longer employed with Tesla as of April 10 and her mailbox isn't being monitored.

I do not want to sign a lease with Tesla, I do want my roof to not get destroyed by the removal of the panels. I'm serious to see what the lawyer says Tuesday.

i did read the other thread, and there were a few differences from one situation to the other.

DO NOT contact Tesla. Take the letters to the title company that warranted you clean title and let their lawyer settle it. You bought and paid for a clean title, it's their job to honor their warranty.

I'm not a lawyer and don't play one, but I am a homeowner and this is EXACTLY what title insurance is for.

[Ampster]

DO NOT contact Tesla. Take the letters to the title company that warranted you clean title and let their lawyer settle it. You bought and paid for a clean title, it's their job to honor their warranty.

I'm not a lawyer and don't play one, but I am a homeowner and this is EXACTLY what title insurance is for.

That is good advice if you have title insurance like we have in California. I guess it depends on who told you that title was clean. Do you have title insurance?

My understanding of UCC filings is that the property owner would have to sign. Another possibility is that it was not a true foreclosure and that the previous owner may have given the bank a deed in lieu of foreclosure. The above is not intended as legal device but questions you may want to ask your lawyer.

if they actually do have the right to come on your property and remove the panels, you may be able to persuade the workers to leave the standoff. Of course that only makes sense if you want to replace the Solar City sole with your own and if the subsequent installer could use them.

[PNW_Steve]

If you paid for a title policy and the title company failed to find encumbrances they will have some liability.

My best advice is to listen to your attorney and not to me.......

[scrambler]

does anyone have any idea how much a 28- 34 panel system costs? I have ZERO information about the system on the roof, just that it works and has worked and that it was put on in 2016.
.

It depends on the panels model.
They usually range from $190 per panel to $350 per panel.
But an installation cost is not just about the panels, but the inverters, electrical and the installation labor.
What is considered today a reasonable all inclusive cost before incentive is $3 per Panel Watt.
assuming these are 300W panels @ $300 per panel, that is a panel only cost of $8,400 to $10,200 and an installation cost between $25k to $30k

[scrambler]

I never said that

A fair offer could be one of two things.

The difference between the cost of installation minus what the previous owner already paid.

You would need to find out how much the previous owner paid them in total (how many monthly payment of how much)

Or based on how old the equipment is, a deprecated value of that equipment (panels plus inverter + rack &misc is probably around $17k new)

[Ampster]

.............

So offering like 6k is probably not going to happen 🤣

I would let them make the first move, especially if your counsel says their interest has been wiped out by the foreclosure. If that is the outcome, then they are facing a complete write off and might take even less.

[scrambler]

Definitely do not make the first move, and wait for the legal stuff to clear who has what right.

[MrDodge]

I have no idea why I feel so compelled to reply to this thread. I know nothing about the law, never even been in a courtroom. But if things have transpired the way you say, I wouldn't do anything....at all......nothing........zilch........nada. In my eyes you've done nothing wrong.

You bought a foreclosure, have a clear title. It's a done deal. If others want to contest it that's fine, make them prove it. Then whomever dropped the ball in your transaction can be held responsible.

I would NOT contact Tesla ever..or an attorney until someone forces your hand.

I would make copies of the clear title documents.

Good Luck

[solarix]

I would wait till any legal action forced your hand, but in any case call Tesla's bluff. They are in a bad position and are hoping you (the new homeowner) will sign up with them. If they do get some legal recourse over you, tell them to come and remove the panels as they really don't want to do that. Used solar equipment is practically worthless and they don't want it. Offer any leasing company pennies on the dollar to give you ownership of the system and they will generally accept the offer.