One loan, Two Properties, Two Different Sellers

[Account Closed]

So I'm under contract for two different properties that each have separate sellers (both parties unrelated completely). Since one property falls below conventional loan minimums (75k is usually what I see as a min) and also to save on closing costs, I worked it out with a lender to do a blanket loan:  one mortgage covering the two properties. He was totally fine with it and I swear I've heard others do likewise.

We're now a week from closing and the closing attorney is saying "Hold up! It has to be two different loans".  I was surprised so I kept asking why - this seems completely feasible.  His reservation is on the recording part:  he said that putting the same mortgage down for both "causes issues".  The attorney did acknowledge that this can be done but his reservation is that this "causes issues" (I am still ascertaining what those issues are).  Anyone else run in to "issues" like this? I'm trying to figure out if these "issues" are more inconveniences this creates for him versus actual problems that create a hazard or liability regarding title. Would welcome any feedback. Thanks!

[Tom Gimer]

There is no reason for multiple loans. The legal description in the mortgage will include the 2 parcels. This is actually quite common. Perhaps your attorney was counting on 2 files and 2 sets of closing fees.

When you sell 1 property you get a payoff (or depending on the numbers a paydown) statement and a partial release release gets recorded. No issues.