Posted on: 08th Jan, 2009 08:18 pm
Hypothetical.... What if a person has used 80 acres that is in repayment (30 yr fixed) as collateral to build a new home, then they need to sell 40 acres of that property. If the 80 acres is being used for collateral is it possible for them to sell part of the land as long as there is a mortgage on the house. Or do you know of a way that let's say 40 acres could be released so that it could be sold.
Welcome gregtimm,
If the loan has been taken on the 80 acres of land, then the lender will never allow you to divide the land or sell some portions of the land. Selling some portions of the land or dividing the land will actually change the collateral.
If the loan has been taken on the 80 acres of land, then the lender will never allow you to divide the land or sell some portions of the land. Selling some portions of the land or dividing the land will actually change the collateral.
You would need to contact the lender to determine if they will issue a partial release for the 40 acres to be sold - they will make an underwriting determination on if it can be done, often you would need a new appraisal, maybe a survey... all depends on what the lender requires. To say they never allow though is false, it's all been done before
i am in agreement with our "guest." these things have indeed been accomplished before, and your lender can fill you in on what you would need to do to accomplish that which you desire.
don't be surprised by surprises. guidelines have changed so dramatically in the last couple of years that your lender may ask for things you wouldn't have dreamed of previously.
don't be surprised by surprises. guidelines have changed so dramatically in the last couple of years that your lender may ask for things you wouldn't have dreamed of previously.
