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Joe, Other/Just Looking in 84116

do i need to notify my bank when selling 2 acres of land when i still have a mortage?

Asked by Joe, 84116 Sun Jul 11, 2010

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5
Joe -

I did not see this question asked......

1) Do you own more than 2 acres and you are selling only a portion of the property and not the enitire property?
2) Is the mortgage on the entire property (assuming it's more than the 2 acres in question)

No matter, if you sell the enitre property, or just a portion of it, the loan likely has a "Due on Sale" clause which means the mortgage needs to be paid off at closing. The title company will handle that.

Best of luck,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage as it is not beneficial to the Seller or the Buyer, but only to the Agent.
888-391-5245 Direct Cell
0 votes Thank Flag Link Sun Jul 11, 2010
As everyone has stated, you will need a payoff number for the mortgage UNLESS you are doing a short sale. If you are doing a short sale (selling for less than what is owed) Then communication is a MUST with the bank.

Good Luck!!!
0 votes Thank Flag Link Sun Jul 11, 2010
Joe you do not need to let them know you are selling it, but once you have a buyer, a payoff request will be sent to them by the closing attorney to get a payoff on what you owe and seek a release for your mortgage allowing you to convey teh property to your new buyer.

i hope this helps
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jul 11, 2010
joe,a title company should be used for settlement and closing. they will request a payoff from your bank, then wire that amount of money to them at settlement from the proceeds of the sale. if you are carrying a contract or seller financing the buyer's purchase, you should get professional help.
0 votes Thank Flag Link Sun Jul 11, 2010
What is your agent suggesting--if you don't have an agent do consult with an attorney who specializes in real estate, for all related documentation--yes, contact your lender--if you currently hold a mortgage, that mortgage will need to be paid off at closing.
0 votes Thank Flag Link Sun Jul 11, 2010
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