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Needachange, Other/Just Looking in Brockton, MA

How does one convert a mortgage for a multi family into a mortgage for a single family once the property has been converted?

Asked by Needachange, Brockton, MA Sun Sep 26, 2010

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You are getting some mis information below. Changing a home from a 2 family to a single family does not require a change in zoning. Zoning is Zoning period. If your 2 family is a pre-existing non-conforming use, once changed to a single you most likely not be allowed to bring it back to a 2 family without a special permit or a variance (towns DO NOT GIVE VARIANCES (typically requires hardship etc. money is not one of them))

As to your mortgage, the collateral is still the home at xyz street, only difference is you are now lacking income to help pay or was used in qualifiying you for the mortgage you presently have. Bank still has same colleteral and you still have the same obligations.
Web Reference: http://www.louiswolfson.com
0 votes Thank Flag Link Mon Sep 27, 2010
I have been involved in conversion going the other way- from one owner to multiple. It is important to have your lender on the team from the start. You are modifying the property on which they lent you money, so they have a strong interest in what happens.
0 votes Thank Flag Link Mon Sep 27, 2010
Hi Need, not enough info to give an informed answer. You don't say if you have equity in the property, and if you did, just how much would you save. A bigger question may be how much less will the property be worth when you go to sell it. Once you convert to a single family it is much more difficult to change it back to a multi.
You also don't mention if permits were pulled for the work done. There is plenty to think about, but I would keep it's legal usage as a multi and pay the extra property taxes, which you may deduct from your taxes. Either way, good luck with what you decide to do.

Dan Derito/ Keller Williams Realty
0 votes Thank Flag Link Sun Sep 26, 2010
You'll have several issues, usually when the work is done with all the permits you should've already had an attorney drafting the new deeds & requesting the new zoning changes with the city. You'd also have the inspectional services coming at different intervals to check on the work done. Notices and approvals would also be done durring this process with your lender to make sure it's progressing so when the work is done & the new deed & zoning changes are completed your mortgage would be recorded at the same time.

If you didn't do it in the permitted fashion you may be in quite a predicament and should consult with an attorney immediately to review your legal options,

Hope that helps
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Sun Sep 26, 2010
Hi, right a lot depends on whether the conversion was done with or without permits. If done with permits you
Wil be rezoned by the city or county, that helps. If you have done it without permits then you refi, an appraiser comes out, and appraise it based on a single family residence.

You can also talk to your current lender, which may or may not be competitive.

Good luck.
Perry
Web Reference: http://Www.ruthandperry.com
0 votes Thank Flag Link Sun Sep 26, 2010
You would neede to contact your mortgage company, they may be able to modify it and if not they may be able to reqrite it, but make sure you ask about any fees or costs.
0 votes Thank Flag Link Sun Sep 26, 2010
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