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Trying to sell part of a ranch

My father is thinking about selling part of his 3 acre ranch but he hasn't finished paying off his mortgage loan. Is there some way to split the mortgage for the small part of the property that we want to sell? Or does this have to be some sort of mortgage transfer? by CGumbl_819_371 from Amarillo, Texas. Aug 3rd 2012 Reply


Henry J Daniels, CMPSI, CMHS (HenryJDanielsNationalMortgage)
#13 ranked lender in Texas - 133 contributions

I've done these before on Rural Properties. The way to do it is to survey out the portion of the ranch you want to sell. Then you would get a Refinance on the whole note where the new loan is on just the part that you want to retain. You will end up with the portion you want to sell with no mortgage lien on it.

Aug 3rd 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

The property would have to be surveyed, divided, and an appraisal would have to be done on the real property after the property split, and then refinanced.. This is not an easy loan, and many lenders might have a ton of overlays to prohibit this type of property split.. Keep in mind, when they lent you the funds for the property initially, it was 3 acres with a home.. Now you are reducing the size of the collateral and asking the lender to keep the same loan in place.. And they just won't do that.. Although some lenders would allow you to do this if 100% of the proceeds were to go against the mortgage.. but again, you would have to check with your lender.. if you have the $$ to pay off the loan completely and then divide the property.. getting a new loan would be easy... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 3rd 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

Your current lender is not going to either release the portion you want to get rid of from the current note, nor is he going to allow a portion of the loan to transfer with the split. Henry has the right solution. It will all need to be coordinated but it will require a new loan on the portion that is being retained. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Aug 4th 2012
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Mortgage Rate PA (MortgageRatePA.com)
#29 ranked lender in Pennsylvania - 6 contributions

Unfortunately I don't think the mortgage company would go along with it either. Is it a operating ranch bringing in money and he wants to sell off part of the business operation of the ranch? Or does he just want to subdivide the land and sell off portions that way? Good luck, if it is the business aspect he may consider talking to a business attorney for the best advice.MortgageRatePA.com

Aug 4th 2012
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