Legal Question in Real Estate Law in California
real estate
Hello, we own property and and have a hard money laon of 100k due in 3 years against the property. We are interested in trading property with someone else straight across. The new property is worth much more than ours. Can our lenders legally transfer the loan to the new property? Is it up to the lenders weather or not to cooperate? The properties are in Cal. Thanks.
3 Answers from Attorneys
Re: real estate
If the loan is secured by the property, you are at the mercy of the lender. Further, most loan documents provide that transfer of the property is a default of the loan, allowing the lender to accelerate and demand the entire amount due. The hard money lender may cooperate, but a conventional lender most likely will not. And, no lender is required to cooperate.
Re: real estate
Well, there is one area where you can call the shots. You can pay off the hard money lender. You might want to look at ways of doing the property swap that include refinancing the hard money loan. If indeed the trade property is worth "much more," all you need to do is convince the lender or some other lender of that fact, and the refinancing should be a slam dunk.
Of course, if the lender or substitute lender doesn't agree with your view on the higher value, maybe you need to re-examine the deal.
Re: real estate
Yes. Yes. That's yes to each question.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
