Closing Date has passed

[crouthers]

What is the name of your state? Missouri

We have an accepted contract for a piece of property that we are buying and the closing date has passed because of a lien on the property.

The situation:

The owner lives on the property and decided to sell the back 3 acres. He went through the process of having it subdivided with all the proper authorities. What he failed to do was let his bank know that he was doing this.

So his equity loan and mortgage is on the whole thing including the back 3 acres.

The title company caught this and let us know we couldnt close until he took care of this.

So he has to get the property appraised and then apply to his banks to get the lien on his property without the back 3 acres.

He is complaning to me that this could get denied and is very expensive (application fees) to even got through with it.

Seems to me if we are paying fair market value (we are) that the banks would make him pay down his not with the proceeds and release the property.

Is this situation fairly common?

thanks in advance for any advice.

Matt

[efflandt]

I cannot answer that. But since you mention the "back" 3 acres, if that land is not publically accessible, make sure you have or get an easement to be able to get to the property. The easement would need to be recorded on the property it crosses.

[crouthers]

There is an easement.

[tholt4]

Seems to me if we are paying fair market value (we are) that the banks would make him pay down his not with the proceeds and release the property

.--Not necessarly so because although you may be paying fair market vaulue for 3 acres, the whole property may be worth significantly more as one parcel without the three acres removed, and that is what the current appraisal and loans are based on.