Help!

We're in a real pickle. My mother bought a foreclosure property from Hud that we believed to be on one lot is really two. The second lot is in the previous owners name. It is such a complicated mess, our contract says we bought the house with one lot, period. The previous sellers inadvertly left it out of the purchase contract but amended it in escrow with the man who went on to lose it in foreclosure. The house has always had one deed with 2 lots included, unfortunately the escrow company awarded him a deed with one lot, caught there mistake later and awarded him a second deed for the second lot, no extra money invovled from the purchase price. We called this man hoping he would help us out instead its been a nightmare. He's putting the lot for sale beyond a price we can't pay and threatening to take off a bonus room that is on his lot. He did not know he had the lot still in his name and did not pay taxes for 5 years. Can he go tomorrow and tear down the bonus room, what does he have to do. He had a real estate man measuring it but is that good enough, thanks for any help.

It may be smart to get some type of injunction to stop him from touching any part of the disputed property. Then a court of law can determine the status of the property.

Have you been maintaining the second lot? If so, for how long?

Have you contacted your closing attorney? Surely there was a title search or survey done? Something similiar happened to me with a easement on my property recorded only in a bond for title agreement that merged later into the deed, where the easement was not subsequently recorded. My closing attorney "missed" the bond for title document and the easement there and I ended up purchasing a home with the equivalent of a public road through it. My choices were to hire another attorney which I did. His advice was to get the closing attorney to represent me since it was, in part, his oversight. He called the closing attorney and encouraged him to represent me or the alternative was be named as a party.
I assume your closing attorney had some responsiblility for conducting a title search and you could have had a survey done. I think your best place to start is with your closing attorney. Was there title insurance purchased at closing? If the property is deeded to you as a bonafide purchaser, you have a legitimate legal interest in the property, regardless of what any neighbor says or what has happened in the past.
Also, ask about easements by necessity and prescriptive easements.. in my state, the time limit is twenty years. I dont know how long your 'bonus' room has been there, but you may be able to make a claim of easement by necessity if you are a bona fide purchaser, as I was.
The people stating they had a right to my property filed a lis pendens on my property at the courthouse and since that day I have been unable to do ANYTHING at all on my house--I cannot paint, add on, refinance, nothing. Lis pendens says, in laymans terms, that you have an legal interest in the deed(property). I had thirty days to respond, and back and forth it has gone since that time. It has been complicated and intricate, and it still hasn't been settled, but for now, my property is secure. Perhaps if you can file a lis pendens (through an attorney--you cannot do this yourself) he will be served with papers and will have thirty days to respond and explain why your interest in the property is not legitimate, and so forth. In the mean while, he cannot do anything to the property(legally, anyway )
That being said, my specialization is in criminal law, NOT real estate. I am merely relating my personal experience with such, not professional legal advice.
Good luck. I know what you are going through.

Purchasing a HUD foreclosure is a bit more complicated than an outright purchase from another party, but even after closing, they (HUD) will be VERY interested in this. HUD was your mother's seller and they don't always allow a survey at closing, depending on the location. They typically allow limited access to the property until final closing documents are signed. Your mother's purchase contract may have indicated one lot, but her final title recorded immediately after closing (before the division) is the key. If 2 separate parcels were conveyed at closing, your mother inadvertently owned both lots and the escrow company cannot legally convey that without her signature. HUD is probably unaware of the division which occurred after closing and quite bluntly, doesn't tolerate this type of action on behalf of either your mother's previous seller or the escrow company involved.
In the meantime, I strongly suggest your mother contact a real estate attorney as soon as possible and present ALL of her mortgage application paperwork (if she financed the property,) purchase agreement, closing documents (especially the preliminary and final title binders.) The legal description on both your purchase agreement and binders are very important. HUD has already had a foreclosure on this property before your mother purchased it and they will NOT be happy to find a division has occurred at this late date without their prior knowledge. If all of this was done "under the table," or even an alleged "mistake," this could be a case for disbarrment and sanctions by a federal agency, i.e. HUD. (It's a given this occurred without your mother's knowledge, if course.) Were real estate agents involved in the transaction? (They would be on the purchase agreement, if so.)
Please tell us which state the property is located in and how long ago the property was purchased. Time is of the essence here, so if you prefer, please contact me via private message, as I do have some very specific questions.