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Old 04-18-2013, 04:35 PM
 
Location: Floyd Co, VA
3,496 posts, read 5,461,286 times
Reputation: 7528

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A neighbor who owns adjoining property mentioned that should I ever want so sell some of my land he would like right of first refusal.

I bought the house on 28 acres in Jan 2006 - purchase price 390,000, down payment 140,000, mortgage 250,000 with a current balance of 211,000.

If I were to sell 10 acres at 7,000 per acre would I have to do a new mortgage or pay down the existing one or ???

I don't have a need to bring in any cash but also don't need the full 28 acres that came with the place so I figured it was worth at least looking in to the ramifications.

Thanks for any help.

ps: If I can get him to take the darn goat in the deal I might be really motivated!
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Old 04-18-2013, 04:42 PM
 
Location: Florida
21,038 posts, read 21,422,934 times
Reputation: 25402
I believe you have to get a release from the lender before you can proceed.
All your questions would be answered at that time although this may answer some of them.
Sub-divide Real Estate With a Mortgage
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Old 04-18-2013, 05:09 PM
 
3,749 posts, read 8,137,694 times
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You will have to refinance your mortgage after sub-dividing your property, making 2 parcels: the one you want to sell, which will NOT be in the refi, and the remaining parcel, which will have to cover the valuation requirement to get the refi done.

Hence, the refi will likely close before the sale of the partitioned parcel.

Last edited by Pfhtex; 04-18-2013 at 05:50 PM..
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Old 04-18-2013, 05:27 PM
 
Location: NC
7,404 posts, read 9,263,290 times
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You might not be in a position to do so, but I wonder if a person would be better off paying off the mortgage, then splitting the property into two lots, then selling one of the lots?
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Old 04-19-2013, 10:19 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 19,882,551 times
Reputation: 6407
You will need a deed release from your mortgage company. You should begin talking to them now about how they want to handle the situation. They may want to write a new loan, but I'd be willing to bet your current mortgage is at a higher rate than current rates. They will want to assure themselves that the remainder property is of sufficient value to protect their interest. If they won't play ball, you might then have to consider a refinance of the property that you are retaining, which will require you to subdivide the property first. Check with the local authorities about the procedure and cost.
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Old 04-20-2013, 08:19 PM
 
Location: southwest TN
8,307 posts, read 15,680,475 times
Reputation: 15349
Contact a real estate lawyer. You should really have one in this situation as well as a survey of the two parcels that you split your property into.

It's not like you have 28 apples and sell 10 to your neighbor, you have to divide your apples into specific 18 and 10 apples and then sell.
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