So my neighbor has listed their property for sale. I'm considering inquiring about them subdividing an adjoining portion to purchase. My question is if they agreed and we bought the part, would it have any impact on my existing home loan?

If they sell no. It goes away with the transfer.

Sorry what goes away with the transfer? Just to clarify, I'm basically wanting to make sure I wouldn't have any risk of my loan being called for any reason (i.e re-plat if the county required it) for purchasing a portion of the neighbors property that adjoins ours.

Oh ok. Get an RE attorney to review any paperwork. If they try to keep the old property then be super cautious because yes the lender will come after him.

Ok I think I understand what you're saying. You're saying the seller still has a loan, they'd be at risk for the loan being called. I have no idea yet if they have any type of lien. I suspect not as it was an inherited property. But makes sense, Id be fine doing a simultaneous close with the remainder of the property.

I was more concerned with MY existing home loan running into any issues.

That's a thread title fail if I ever saw one.

Seems like buying adjacent land is no different than buying a car. No impact to the asset supporting the mortgage.

Haha fair point, I hadn't considered the actual subdivider having a mortgage, too late to change now.

And agree that's my assumption as well. The main thing crossing my mind was I didn't know if the county (Austin County) might require you to like re-platt and connect the two properties because it would require a variance from the county subdivision regulations. And if they did, I don't know if that might result in a risk to the loan being called. Probably something I just have to test with the county and a local surveyor.

Thats why you need a lawyer not us

That's a great question and a different process. I'm curious to hear what you learn. Good luck!

Thanks for the input everyone, will definitely be talking with a lawyer. My mortgage documents are pretty clear they can only accelerate payment if any ownership or interest in the property is sold or transferred. The only grey area might be the word transferred so we'll see but we would still have ownership.

Will be an interesting process to attempt.

The statutes empowering the local governments to regulate platting activity don't have much for teeth until you try to do some kind of regulated development of that property. Depending on the size of your partition, you may be making an illegal partition that can sit there as a side yard for years without causing a problem.

Austin County was pretty good to work with the last time I had to deal with a non-conforming partition. In fact, I can't recall a more rural county ever denying a waiver request for something like this on the front end. You'd do well to call your Commissioner directly and ask about it.

My experience just from reading the paper is that they frequently approve variances for things like this when it's just neighbors selling to a neighbor.

True, but, I'm assuming from what you stated that you're out in the County. You can usually get them to provide a letter stating no objection to an otherwise illegal partition without more than a phone call and follow up letter to your County Commissioner. Won't get your purchase published in the paper or discussed on the radio.