Need partial release of mortg. - Posted by reinvestor

Real Estate Investing Apartments
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Posted by JohnBoy on May 01, 2005 at 13:38:24:

Can they do this? Yep! You pledged both properties as security to secure their loan. Unless your mortgage says differently, then can do this.

What I don’t get is why they would want income from the apt. since that is the one you are selling. If you are selling the apt. then the income from that should mean nothing to your lender. You will no longer own it so any income that generates wouldn’t be yours. They should only be concerned with the SFH since that is the one you are keeping.

What about just getting another loan for the SFH and taking the funds from that new loan and the funds you get from the sale of the apt. and use that to pay off the current loan and pocket the difference? Since you are keeping the SFH a new loan should be easy to get since it’s a SFH and not commercial property.

What is the SFH worth by itself? What is the apt. worth by itself? What is the pay off on your current loan? What are you selling the apt. for?

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Need partial release of mortg. - Posted by reinvestor

Posted by reinvestor on April 30, 2005 at 22:53:12:

I have a SFH and a small apt. on one commercial mortgage. I want to sell the apt. bldg and the lender has said I may be required to pay off the entire loan unless I provide a lot of documentation to show 12 months of income and debt service for the apartment (apparently the no late pays on my mortgage are not enough). Then they can decide.

I may not get a high enough offer to pay off the loan entirely and since I only want to sell one property, they are preventing me from selling if they refuse to release it from the mortgage. Can the lender do this?