Generally speaking, your mortgage won’t be negatively affected by partial land taking or eminent domain action. However, depending on the status of your mortgage, your mortgage holder may get involved in your condemnation case and attempt to claim some or all of the proceeds. However, it’s still a good idea to keep your mortgage holder informed of a possible land taking. In the event of a partial land taking, the condemning agency (or its buying agent) will usually want you to approach your bank to have it execute a Partial Release of Mortgage.