Can I sell half of the acreage of a 10-acre property if I have an outstanding mortgage on the entire property?
Question Details:
I am a KS licensed attorney. It is possible to do so; however, it must be done in conjunction with the mortgage holder. Generally banks will not release a mortgage without additional security.Feel free to email me at sean@roadlawyer.net or call me at 913 441 5025 if you want to pursue this.
-Sean Santoro
Santoro Law Office
No, you cannot; at least not without your lender's permission. Possibly if you pay off half of your mortgage they will agree; you then could keep the difference.
Selling the property subject to the mortgage will be an event of default and will accelerate it, which means that the outstanding balance will become due and payable. If you really want to sell, you should contact your lender and see if a partial release of the mortgage is an option.
Actually, you may want to consult first with an attorney in your area on this.
I am a lawyer in CT and practice in this area of the law. You may; however, the buyer is taking the property subject to a mortgage whereby if you fail to make the monthly payments the lender can come and forclose on the entire property and hold you personally liable for the amount of money that you failed to repay. you should not sell half the property unless you are going to use that money to pay the money to the bank to repay the mortgage.
