Can I Sell Part Of My Land If I Have A Private Mortgage?

Selling land is a viable option for people that want to unload some of their property for capital.

However, a person who has a private mortgage does not own that land yet. Selling a part of it might sound ideal, but is it viable?

It Is Not Hard To Do

First off, selling the entire property while one has a mortgage is not difficult. This is actually a fairly common situation.

However, if a person wants to sell just a piece, then the first step is getting the lender’s consent. Without getting clearance selling just a portion of the property is impossible.

Usually, lender’s are quite amenable to their borrower’s selling a piece of the land. After all, the land is still being sold.

It all depends though on if the asking price is fair. Obviously, if land the seller is paying $10 000 per acre for it then it is not something that one will be able to convince the lender to sell for $1000 an acre. The sale has to be in line with making the initial money from the mortgage back.


Also, the person wishing to resell the land should have some collateral. This way the person issuing the mortgage will be able to take that collateral if the seller stops making mortgage payments.

It will really depend on if the private lender has trust in the person who is purchasing this private mortgage. There will still be legal backing in this proceeding, so the lender is not taking a huge risk.

However, the lender can still ultimately make the decision here. This is not a mortgage that is being issued by a bank.

If a person really wants to sell part of the land, then this person might want to share any profit above and beyond the mortgage with the lender. A lender would not be happy to know that the person selling will get double the price that the lender is getting for the land. This could become a complex situation.

Get A Lawyer

In all cases it is best to go through a lawyer with property dealings. This is too large of a sale to rely solely on realtors.

Selling a portion of the land might be ideal for the person with the private mortgage because it might free up some cash each month. However, it will require an initial investment, so the person with the private mortgage should be aware that this is not a seamless process.

With persistence and determination, as well as a yes from the lender, it can be done.

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