2007-03-19 12:51:01 · 5 answers · asked by Sqwrll F 2 in Business & Finance ➔ Renting & Real Estate
Subdividing the land has nothing to do with the mortgage. The end result of the subdivision simply means that all of the lots you created are still mortgaged and to be able to sell one you will have to pay off the entire balance on the note unless when you created the note and the mortgage you had the foresight to create a partial release clause on the mortgage. To be able to sell a parcel of land now if you create one will require negotiations with the lender to be able to only pay a portion owed on the note balance. Or you might want to refinance after the subdivision is created since the value of the land should increase. If you do refinance I strongly suggest that you require a partial release clause for an amount lesser than the amount that you will sell the lots for allowing you to now begin to create a return on your investment.
Buena Suerte
2007-03-19 13:07:28 · answer #1 · answered by newmexicorealestateforms 6 · 2⤊ 0⤋
You need a realestate lawyer involved at all stages. First of all you have to be sure that you can do this. After that you end up subdividing and taking out two mortages. That way your property becomes two and you can handle each seperately. A lawyer really is key.
2007-03-19 12:57:51 · answer #2 · answered by ttpawpaw 7 · 2⤊ 0⤋
Thats an interesting question and I hope you find valuable answers
2016-08-23 21:33:02 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Need more details
2016-07-28 09:52:17 · answer #4 · answered by Marquerite 3 · 0⤊ 0⤋
thank you for all the answers.
2016-09-19 22:38:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋