A client asks me to subdivide the property around their house and create a second tract of raw land . They say forecloser is emminent and they want to save the raw land . I ask her if the whole parcel was on the deed of trust she says yes but not worry thats her problem . I say well your going to have bigger problems then forecloser if you do this. again she says not your problem . I say I am booked and cant get to until spring . Also she brought old maps from a retired surveyor and said she just wanted me to update his maps . Some work is not worth getting envolved with.
Agreed. Sometimes we are better off letting that wanna be client be a pain in someone else's backside.
Larry P
If a lis pendens has been filed against the property in preparation for foreclosure, the city/town/county will never approve a split.
Heres a new one ... to add to that...
That begs a question: If a property is part of a mortgage, would it be legal at all to divide said property? To do so would be subverting (for lack of a better word) the mortgage holders collateral. I would think that would be akin to outright theft.
While I write that, another weird scenario comes to mind: What if I buy a property outright - cash, no mortgage. Then later on, I decide to build a house on that property using a mortgage without the property as collateral. Later, after the house is all built and I move in, I default on that mortgage.
What happens then?
Heres a new one ... to add to that...
> That begs a question: If a property is part of a mortgage, would it be legal at all to divide said property? To do so would be subverting (for lack of a better word) the mortgage holders collateral. I would think that would be akin to outright theft.
I tell everyone that asks me to subdivide their property; they need approval from their bank, if they have a loan on the property.
> While I write that, another weird scenario comes to mind: What if I buy a property outright - cash, no mortgage. Then later on, I decide to build a house on that property using a mortgage without the property as collateral. Later, after the house is all built and I move in, I default on that mortgage.
> What happens then?
I don't know of any bank that would approve a loan like that today; maybe 5 or 6 years ago....;-)
If the total value of the home and all the acreage is way higher than amount owed and the home itself with the direct home use boundary's would be ample collateral, you might be able to divide the tract with the lien holders full knowledge and consent. Here it would require a Partition Plat, with a statement of consent on the face of the Plat for the lien holder to sign with a Notary as witness. That does not change ownership, only divides the lands, other documents would be needed to revise and release part of the originally described collateral that is underwriting the lien.
jud
Heres a new one ... to add to that...
Around here the mortgagee has to sign off on the subdivision, on the actual map. No mortgage, no problem. I've had clients have to send maps to California and Texas to get them signed off. What a mess that turns into. The local folks refuse to sign, basically because they have no clue what's happening and refuse to take responsibility.
I work in 3 counties and only one requires the lien holder to sign off on the subdivision.
Heres a new one ... to add to that...
I have cut small tracts around a clients house before a loan is taken either put the raw land up as collatoral or the house with small tract , one gets saved . Nothing wrong with this . This client is trying to do it after the fact , I shall not be part of this situation.
the client also had a Realestate agent tell her to do this , and said the banks are so tied up they would never catch it. If she gets this done with another surveyor and the map gets recorded . I can see this going to auction , lowest bidder gets the house and he dont need no survey , all he!! breaks lose down the road.
> I work in 3 counties and only one requires the lien holder to sign off on the subdivision.
Stunning! I've never heard of the lienholder *not* signing the face of the subdivision map. It can't record without all holders' signature(s) of record interest (including easement holders) as shown on the title report (or subdivison guarantee).
Heres a new one ... to add to that...
I've done that too where the client owns acreage but only wants metes and bounds for 1 acre tract around the house and the access strip to the road. Done for bank financing purposes. Technically it is a unauthorized subdivision. If the house goes to foreclosure, the owner holds the surrounding land and there is a division of land that the city didn't approve and doesn't meet subdivision regulations. But, I guess that is SEP (someone else's problem). I have meet my state surveying requirements.
We were once hired to "unsubdivide" a property that had been subdivided by a bank that held a mortgage against a property. I am not sure why they did not hire the original surveyor. Pretty crazy.
I know one thing, if I did do it, knowing this person is already not paying their bills apparently and in iminent danger of foreclosure, I would want my money, possibly in cash, all in advance.
I work in 7 different Counties on a regular basis. None require a lien holder to sign. It's never investigated by anyone. You're surveying/mapping a minor subdivision, you're not altering a Deed of Trust or promissory note.
> the client also had a Realestate agent tell her to do this , and said the banks are so tied up they would never catch it. If she gets this done with another surveyor and the map gets recorded . I can see this going to auction , lowest bidder gets the house and he dont need no survey , all he!! breaks lose down the road.
Wouldn't the deed of trust prevail over a subsequent warrantee deed? In other words, suppose your "client" did this and then the bank came to foreclose, wouldn't the bank gain title to both tracts anyway?
I actually was trying to convince her that no matter what subdividing she did the bank would still own the property as a whole , she would not hear any of it . I told her she was wasting money on the survey . I got the feeling she was not playing with a full deck.
The mortgage is on the entire piece of property, so both parcels would be subject to it. Both parcels would be unmarketable if they foreclosed.
Hi Friends, nice to meet you. I am newbie here and I am here because I want to share my thoughts and learn something new.
> I work in 7 different Counties on a regular basis. None require a lien holder to sign. It's never investigated by anyone. You're surveying/mapping a minor subdivision, you're not altering a Deed of Trust or promissory note.
Not in these here woods:
66430. No final map or parcel map required by this chapter or local ordinance which creates a subdivision shall be filed with the local agency without the written consent of all parties having any record title interest in the real property proposed to be subdivided, except as otherwise provided in this division.
Welcome
I'm sure you'll learn something. Now whether it's right or wrong I can't guarantee. I've picked up some good tips and gotten some different perspective over the years. Just keep in mind that you may need a thick skin sometimes.
Andy