Mar
17
I would like a reverse mortgage, but recently the city rezoned our property to commercIaL?
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I would like a reverse mortgage, but recently the city rezoned our property to commercIaL, It has been our home for over 35 yrs and never been used commercIally, How can I get the mortgage! Thanks, Richard
Sell and Rent Back
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4 Comments
June 1st, 2009 at 11:12 am
You can go to the city and ask for a burn down letter that you can give to your mortgage company. It states that if something should happen to your home (fire) you will be allowed to rebuild it on the same lot. After 35 years your home should be grandfathered in anyway. I would talk to the head of zoning.
June 2nd, 2009 at 12:59 pm
You can’t.
If the city has rezoned your home, the legal term is called “legal non-conforming”.
That means that as long as your structure stands, you can use it as a residence, you can sell it, you can mortgage it, you can do anything you want to with it.
However, if the property is a total loss, they will not permit you to rebuild….that would defeat the entire purpose of rezoning your propoperty.
In many, many years of underwriting, once it is discovered, I have never seen a city issue a letter granting permission to rebuild in the event of a TOTAL loss.
June 2nd, 2009 at 2:53 pm
We would hope that this rezoning may enhance the value of your property, but that is to be seen.
You might be best to find out what your house would be worth for immediate sale. Keeping it as a house with the area going commercial may not be the way to best use your investment.
Eminent domain rules can present a problem if your property becomes an impediment to commercial development.
As a lender I would be wary of a house in an area recently rezoned commercial.
June 5th, 2009 at 11:06 am
If the city recently rezoned a residential area with existing houses to commercial something is afoot and you had better find out what it is. It sounds like a redevelopment project. Haven’t you been following local news, notices of zoning hearings regarding your property? Find out what is going on! See a real estate attorney to get all the info and find out exactly what your legal rights are in this particular situation, and to negotiate the sale of your property to the developer (you’ll get more money for it if the attorney negotiates from the start!).
Get going on this. Forget reverse mortgage. You have a more serious problem — there is a possibility that you are about to lose your home. Get the money out of it and find a better place to move.