Do we absolutly need a refinance?
My parents bought 25 acres with house & kennel. They want to sell me 1 acre. Will the lender allow them to remove the 1 acre from theirloan without refinancing? by jessica2s99 from Colorodo Springs, Colorado. Jun 30th 2010
Gregorio Denny (GVDenny)
#257 ranked lender in California - 380 contributions
You cannot sell a portion of a property secured by a note without potentially triggering a "due on sale or transfer" clause.
Allen Lundberg (ColoLender)
#19 ranked lender in Colorado - 24 contributions
I would suggest that you call their current Lender. I believe that they would need to refinance because their current loan is tied to the whole property, including the 1 acre that you want to purchase.
Bill Dunger (billdunger)
#17 ranked lender in Washington - 35 contributions
Your parents would have to sub-divide the property.
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
This would depend on the lender. Most lenders on rural owner-occupied property do not give any value on land over 5 acres. You need your parents mortgage documents.Then, I suggest you speak with a real estate attorney. A few buck, but it will be worth it. ... Happy funding, Rudi
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