QUESTION
can I re-deed a property line if there is a small HELOC on the property?
Asked on Apr 08th, 2019 on Real Estate - New York
More details to this question:
I own 2 adjacent 5 acre lots. One has our current home on it with a small HELOC still on it. I want to move the property line of the adjacent vacant lot up a bit and use a small amount (1 acre) of the land that the home is on, and will be building another house on the vacant land. Can I move and re-deed the property line with the HELOC lien still open?
1 ANSWER
1 Award
While it is a technical default under the HELOC to transfer the title, you can do it if you are giving it to someone who does not care (like a family member). However, you have bigger issues. If you are building another house and selling it, you need to create a separate tax lot, which requires filings with the town to make a subdivision. Also, a third party will require the HELOC to be paid off. The HELOC people will not carve out property from the lien. Also, you will need permits, etc., for the construction.
Answered on Apr 18th, 2019 at 9:46 AM