Teardown in Prince Georges county (foreclosure, mortgage, construction loan)

[luv4horses]

How difficult is it to get premission to tear down a completely unlivable house in PG county? I am looking at a foreclosure where the house was totally trashed before the inhabitants left.

[RamblingMan]

I don't think getting a permit to tear down a house you own is all that difficult if the house isn't historic, but the only way to know for any specific case is to check with the Prince George's County permitting office. Obviously, you want to be sure before closing your deal. But you should also talk to your builder and your mortgage lender before you buy. I think you'll find that financing a teardown and reconstruction can get complicated. If the house is truly unliveable, I don't think banks will give you a traditional mortgage loan. If the house is liveable, they'll give you a mortgage loan, but I don't think they'll let you tear down a house that is part of their collateral. I think you'd have to get a construction loan and that will be more expensive and difficult than a regular mortgage.

I don't know how much money a teardown costs, but to me it would have to be a pretty special piece of land or a really great deal to make it worth the extra hassle and expense to manage a teardown. Otherwise it would be easier and probably cheaper to just buy a lot and do a new build.

[luv4horses]

Thanks for the reply. The property was not special enough for me to persue. Someone did buy it, but I think it first became bank-owned and the bank may have torn it down. It was one of those places in the suburbs that had had some unsavory people living there for a while--one of those blights on the neighborhood.