If I have a morgage on my proprety and I will like to sell a small lot from that property,is it possible ?

Approximately 2 years ago we bought a property; the total was $ 187,000; we put $90,000 down. We still have a total mortgage $76,000 but want to sale a lot for $20,000. We are unemployed, we need money to paid. What is possible to do?

Asked on September 16, 2011 under Real Estate Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Is the property that secures the mortgage (trust deed) for the loan one legally decribed parcel or more than one? If the proeprty is only one parcel and you want to sell a portion of it, you will need to make an application with the governmental entity's permit and zoning department where the property is located to do what you desire.

In all likelihood, it the mortgage (trust deed) is recorded on the entire parcel or both parcels if more than one and you sell one parcel (be it presently a separate parcel or create a new parcel), you can do so. The problem is that there most likely is a due on sales clause on the mortgage (trust deed) where if you sold one of the lots from the parcel secured for the loan, the entire net sales amount would go to pay down the amount owed on the loan.

I suggest you consult with a real estate attorney regarding your desire.

Good luck.


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