Must you give your eminent domain proceeds to your mortgage company?
The typical mortgage deed provides that you must give your eminent domain proceeds to your mortgage company.
Attorney Tom Olsen: Patrick, you're on News 96.5. Go ahead.
Patrick: Yes, I have a question on eminent domain and a contract with the mortgage company. Here's for number sake, I'll say that the mortgage is $15. Eminent domain and the Department of Transportation needs the piece of property. They had valued the piece of property that they need per dollar.
Attorney Tom Olsen: Yes, I got you.
Patrick: Now, their good state is offering with $10. The mortgage want to take everything that the Department of Transportation-
Attorney Tom Olsen: Yes, Patrick-
Patrick: -has offered.
Attorney Tom Olsen: I get you. Patrick. The typical mortgage out there whether it's a residential mortgage, whether it's a commercial mortgage says that if any of your property is taken through eminent domain, you must turn around and pay all of those proceeds to your lender. That's the bad news. The good news is you're reducing the debt on your property. Patrick, you're asking me, do you have to turn over that eminent domain attorney to your lender, I would suggest to you the answer is yes. Look within your mortgage deed to find if I'm correct about that.