I bought a single family on a double lot that I converted into two unit. I'm starting to do the numbers for developing the extra lot, and mapping out the process. In particular, I understand that before partitioning I will need to have my mortgage lender release the lot from the lien. My loan has bounced around a bit but is now with Western Alliance Bank at a rate I don't want to lose. Their main line operators have been helpful in walking me through the steps. To start the process they require: 1) letter of intent; 2) lien release proposal written with attorney or title agent; 3) survey with descriptions of before and after. All mailed to their office to "start the process".
Despite my consistent asking and unsurprisingly, they haven't given me the number for the office that actually handles these proposals. The title agents in my small town near PDX didn't have any familiarity with the process. I haven't reached out to my attorney yet, but plan to.
I'm looking for some guidance from folks who have been to this rodeo before, and bonus points if you've worked with Western Alliance Bank...before I spend a couple thousand without results. I've only held the property a couple years but between the improvements for adu and appreciation, I think the structure and remaining lot will still provide a healthy LTV for the bank.
What are the criteria bank use to evaluate proposals? Although they didn't request it, should I get a before and after appraisal? What am I not thinking about here?
Thanks,
Nate
