Legal Question in Real Estate Law in Utah

Bad, Bad Lender

The railroad company wants to purchase part of our backyard, about 30% of it, to build tracks for a medium-speed train. They have offered us about $30,000, which we think is fair. All the paperwork has been done and we are just waiting for the check from them. But last week a person from the RR company called me saying that our lender, Bank of America, wants ALL of the money. Is this even legal? Can they do that? Do we have any recourse at all? Isn't it OUR house as long as we pay for it? We have lived in it for 4 years, never missed a payment. Thanks.


Asked on 7/20/09, 12:40 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Bad, Bad Lender

A mortgage holder has a security interest in all of the real estate - and they can claim that their loan be paid before you sell off part of the land.

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Answered on 7/20/09, 11:46 am


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