refinance of nonconforming use 4 plex (?) - Posted by JD
Posted by JD on January 29, 2002 at 18:49:15:
I own a 4 plex which I am trying to refinance. The use is non-conforming for the current zoning. But I have a certificate of nonconformance. Which means that everyone that matters in County and City government knows that the property is a 4 plex and they are fine with that, but if it burns down (highly unlikely since it is made of brick and concrete block) I can’t rebuild it as a four plex. My current loan is a portfolio loan from a local bank. I would like to get the better loan terms that are available for non-owner occupied 4 plexs on the secondary market, but my loan agent is telling me that guidelines say that a certificate of nonconformance is not good enough. The reasoning being that if the property burned down, the lender’s security would be at risk. I already carry more insurance on the property then it is worth, and would be willing to carry more to protect the lender, but those did not seem to be persuasive points. Any suggestions.