Question Details

Lida Lea, Real Estate Pro in Texas

I have a commercial property with a mortgage with a lock-out provision prohibiting sale for two more years.

Asked by Lida Lea, Texas Sat Dec 22, 2007

Can I legally sell the property by wrapping this mortgage to a new buying party? The property is located in Texas. Any ideas on how to proceed?

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Answers

1
Any wrap or other plan to convert the existing loan may not fly, depending on the lenders requirements and what you signed naturally. Your question will be hard to answer for anyone who has not reviewed the loan documents, however... as usual here is my 2 cents worth.

I would 1st review the docs or better yet have an attorney look for loop holes, last time I did that it was only $150 and worth it. Another step would be to contact your mortgage note holder and discuss what options that they can offer. I had one lender that allowed me out of my "pre-payment penalty" loan without any cost to me by agreeing that the new buyer would do the new loan with them (Countrywide Home Loans no less).

I have also found that ....as with a current pre payment issue with a rental I wanted to sell, the pre payment penalty was only $5,000 and the profit on the sale will be in excess of $50,000 net. ITS ALWAYS ABOUT THE NET.... so a 10% loss for me is acceptable. Ez stuff.

Hope this has helped a bit. :)

MERRY XMAS.. and HAPPY NEW YEAR... 2008 will be a GREAT YEAR!
-Don


*side note: i am listening to a cd of Stevie Wonder's Greatest Hits...,
great way to start my day.
0 votes Thank Flag Link Sat Dec 22, 2007
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