the small house sits on its own property. The bank had it listed for sale separatly from the business we bought, even tho the utilities are attached to our business. We bought the entire property out of foreclosure, so the bank tossed in the small house. It is not listed as separate property in the paperwork. We now want to sell the small house and apply the money to our business. The bank doesnt seem to want to let us do that, they avoid the issues..They knew we wanted to sell it from the beginning, but now, act like its up to them.. We want to know if we have the right to sell this property anyway. And does all the money HAVE to be applied to the property ..thanks...
2007-01-25 20:20:14 · 3 answers · asked by can u answer my question?? 1 in Business & Finance ➔ Renting & Real Estate
The bank is reluctant to have you sell probably because when they did the loan it was probably based on a combined value of the business and underlying R/E and the SFR property. If you liquidate the SFR, they will be forced to reduce the loan (so that it is in compliance with the just the value of the business and underlying R/E) and call on the balance. This means that what ever you gain from the sale would be applied towards the loan...so in effect, it is up to them. Look at your loan covenant...if you change the structure of the loan by selling the SFR w/out their approval, they will be royally upset and I bet they CALL on the loan.......
2007-01-26 00:15:01 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
If the mortgage includes both properties, you must give the bank the money you get for the small home but that money goes straight towards the principal amount owed. Sometimes the bank will let you keep some of it. They just don't want to redo the paperwork but the banks around here would be happy taking your money. You'll probably have to get seperate meters for utilities but that is minor. You will have to pay capital gains on your profit so check with your accountant on that. One of your other answers said you should keep it 2 yrs to avoid cap gains but that only applies to your "MAIN" residence and I assume you do not live in this small home.
2007-01-26 07:43:10 · answer #2 · answered by dreamgirl 5 · 0⤊ 0⤋
you should wait for 2 yrs after the purchase of the property.. so that you dont have to waste your money on paying extra taxes on it
2007-01-26 04:29:40 · answer #3 · answered by Patrick S 1 · 0⤊ 0⤋