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If a property is mortgaged, you can subdivide parts to sell but only with the lender's approval. Otherwise, you're risking triggering the loan's due-on-sale clause and might need to pay off the total mortgage. To sell a part of the land you should get a partial release of mortgage.
Borrowers who can no longer afford to stay in their home may consider a Mortgage Release?, also known as a deed-in-lieu of foreclosure, to avoid foreclosure. This is also a good alternative for homeowners who are unable to sell their property, whether for a full payoff or a short sale.
A partial discharge is when you have more than one property secured by the same home loan, and you want to release one of those properties as security without repaying the entire loan amount. These may take longer than traditional discharges because your Lender may need a valuation done on the remaining properties.
What Is a Release Clause? A release clause is a term that refers to a provision within a mortgage contract. The release clause allows for the freeing of all or part of a property from a claim by the creditor after a proportional amount of the mortgage has been paid.
A partial release is a mortgage provision that allows some of the collateral to be released from a mortgage after the borrower pays a certain amount of the loan. Lenders require proof of payment, a survey map, appraisal, and a letter outlining the reason for the partial release.