U.S. CitiesCity-Data Forum Index
Merry Christmas!
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 04-25-2008, 12:23 PM
 
5,244 posts, read 3,128,520 times
Reputation: 1798

Advertisements

Here is the situation. One of my friends began to build his house on his land in 2005. They were paying cash for the build but ran out of money. At this point what has been built is just sitting there. It is not liveable because it has no electricity, etc. My question is, is it possible for them to get a loan/mortgage to finish it using the land it sits on as collateral? Or someone else suggested getting a home improvement loan, is that possible if they are not living in it? Thanks!
Reply With Quote Quick reply to this message

 
Old 04-25-2008, 12:35 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,783,663 times
Reputation: 975
fha 203k would be good
Reply With Quote Quick reply to this message
 
Old 04-25-2008, 02:38 PM
 
5,244 posts, read 3,128,520 times
Reputation: 1798
thank you. I googled it, looks like a possibility, and will pass the info to my friends. Thanks!
Reply With Quote Quick reply to this message
 
Old 04-25-2008, 04:43 PM
 
3,359 posts, read 7,522,089 times
Reputation: 1415
Quote:
Originally Posted by therewego View Post
Here is the situation. One of my friends began to build his house on his land in 2005. They were paying cash for the build but ran out of money. At this point what has been built is just sitting there. It is not liveable because it has no electricity, etc. My question is, is it possible for them to get a loan/mortgage to finish it using the land it sits on as collateral? Or someone else suggested getting a home improvement loan, is that possible if they are not living in it? Thanks!
Of coarse it is. A much smoother process would be for him to go to his local bank, get a construction loan to finish the project and then if necessary, get an end loan (ie. 30 yr. fixed conventional) once the property is completed.
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 02:03 AM
 
1 posts, read 10,079 times
Reputation: 11
Hello-I am in the same boat. I have a home under construction, but I ran out of money to complete my home. Because of the way the market is, property does not have equity. How can I get money to complete the construction of this home?? My credit is not good at all. I had other homes that I had to short sell and also have several collection accounts. What can I do?
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 07:54 AM
 
310 posts, read 321,266 times
Reputation: 249
Quote:
Originally Posted by nicantsam View Post
Hello-I am in the same boat. I have a home under construction, but I ran out of money to complete my home. Because of the way the market is, property does not have equity. How can I get money to complete the construction of this home?? My credit is not good at all. I had other homes that I had to short sell and also have several collection accounts. What can I do?
What you can do is forget about getting another loan. Pay off you debts, clean up your credit, THEN get a loan to finish construction. Why would you even think about going further into debt if you have so many bad debts already?
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 08:37 AM
 
Location: State of Superior
8,020 posts, read 8,408,656 times
Reputation: 2235
Quote:
Originally Posted by Balvenie View Post
What you can do is forget about getting another loan. Pay off you debts, clean up your credit, THEN get a loan to finish construction. Why would you even think about going further into debt if you have so many bad debts already?
Folks DO need a place to live, regardless of credit standing. For many people , they got cought in the middle of the downturn , when mony was available for things like construction loans. Now it is not. yet , the incompleted home is still there, it does not go away. Meanwhile , the weather and time works against the homeowner.

My advice is , by hook or crook , get the home finnished far along enough so as to move in. Get out the toolbelt , put in all the sweat equity you can muster. Yes it will be umcomfortable living in a construction zone , but that sure beats rent. The savings not paying rent can go towards paying off debts ,...and go toward finishing the property..... Its working for me , glad I did it...just one more year and I will be debt free, ..including the home construction ( hopefully )....Then , the possiablities are endless, if I so choose. We still may not be able to get a mortagage but , WILL have a roof over our heads...that we own free and clear...a good feeling !

Tough times require tough solutions. This is no time to roll over and play dead , ...it is time to be inovative. Forget the Banker , he is not your friend , your own boot straps are....
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 10:19 AM
 
310 posts, read 321,266 times
Reputation: 249
Nobody said he didn't need a place to live, but he's got NO business trying to get another loan when he has so much delinquent debt already. Bank might as well just light the cash on fire rather than take a risk on someone with bad credit, overdue debts, and several short sales.
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 11:12 AM
 
Location: State of Superior
8,020 posts, read 8,408,656 times
Reputation: 2235
He was just asking a question... You do not know ether. The uncompleted home does have value, and the longer it sets unfinnished the less value it will have.... We need to find ways to fix the problems , not just create more and more abandonded homes and projects.

The Bankers are now sitting on all the forclosed homes , doing nothing , while thinking they will be better off with the property...hoping its value will go up, instead of finding ways for people to get a roof over their head. Its a big problem , and one that won't go away until there are creative ways to solve it.
Reply With Quote Quick reply to this message
 
Old 02-08-2010, 01:06 PM
 
Location: Salt Lake City UT
61 posts, read 197,660 times
Reputation: 25
203(k)'s don't seem to work in these situations. It is good if there is a purchase involved or if the home is in livable condition (Has a certificate of occupancy) if the situation fits neither of those cases, another solution needs to be found.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $89,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top