Partial release of mortgage to pay off entire loan

[nlucky]

I doubt that a partial release of the loan would happen. However, your $115,000 would be enough to pay off the $70,000 balance. The $115,000 would be put in escrow. During the escrow period the subdividing would occur, your part of the property would be deeded to you at close of escrow and the mortgage company paid. The other owners would just continue owning the remaining property.



You'll probably need a survey. Maybe a thousand or two. Call surveyors to find out. Subdivision fees. Likely county level. Call and find out. Escrow company fees, title insurance. Call title company and find out.



Then why not buy the whole property for the $115,000? Would seem a lot less complicated.

At this time I only qualify for an FHA loan. Somewhat stringent appraisal/inspection. The other 2 houses are in too much disrepair.

 

[adjusterjack]

Would your friend and his siblings be willing to do seller financing?

They would be able to get rid of the whole property and have an income for a few years.

 

[nlucky]

Would your friend and his siblings be willing to do seller financing?

They would be able to get rid of the whole property and have an income for a few years.

Good question!
My goal is to keep our monthly burden down as low as possible - even if it is for 30 years. I'm guessing that would be a higher monthly burden for a shorter time, correct?

I really appreciate you taking this time!

 

[LdiJ]

Would your friend and his siblings be willing to do seller financing?

They would be able to get rid of the whole property and have an income for a few years.

I don't know that the income would be high enough to make the hassle worthwhile. They would have to set up a partnership to deal with the mortgage and cover the tax aspects and issue the K1s. One of them would have to manage all of that. The income would have to be high enough to service the mortgage and give them enough "profit" to make it worthwhile.

 

[nlucky]

I don't know that the income would be high enough to make the hassle worthwhile. They would have to set up a partnership to deal with the mortgage and cover the tax aspects and issue the K1s. One of them would have to manage all of that. The income would have to be high enough to service the mortgage and give them enough "profit" to make it worthwhile.

Makes sense.
I think they really want to be done with it.