Legal Question in Real Estate Law in Virginia
real estate
I have a mortgage on a property & I want to section off a part of the lot to sell to my daughter but she will pay monthly payments on. Can I get a deed on the lot if it has a mortgage on it and the mortgage won't ok the separation of the lot?
2 Answers from Attorneys
Re: real estate
A transfer of property encumbered by a mortgage (deed of trust) could trigger a due on sale clause. The lender does not want to lose the security in the property. Perhaps, if you could make a reasonable principal reduction,the lender would consider a "partial release" of the portion you wish to deed to your daughter.
In any event, you might wish to have an attorney review your loan documents and the deed by which you hold title.
Re: real estate
No, I don't see how you could if the lender refuses to agree to have the lot subdivided as you've proposed. It's possible that the lender views such a subdividing as possibly impairing the value of the property
and, consequently, the mortgage which was given for such property.
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