I just bought a house and considering knock-down rebuild. What would happen if I didn't contact the mortgage company?

Asked by Andyfarbs, Paauhau, HI Mon Aug 6, 2012

This is a second home, vacation property. Our original plan was to remodel, but as we got into it, the costs added up to the point where we thought of rebuilding.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Andyfarbs, Home Buyer, Paauhau, HI
Mon Aug 6, 2012
Loren, Joseph -

I have considered both calling a real estate attorney and approaching the bank. I have also been advised to build and ask forgiveness later. I appreciate your advice.
0 votes
Loren Hoboy, Agent, Phoenix, AZ
Mon Aug 6, 2012
Your best bet is to ask a real estate attorney. That way you are covered legally.
0 votes
Loren Hoboy, Agent, Phoenix, AZ
Mon Aug 6, 2012
Why don't you ask your loan officer?
0 votes
Joseph Shmur…, Agent, Irvine, CA
Mon Aug 6, 2012
Andy,

The call provision is an important component of various types of debt agreements that provider the issuer of an agreement to exercise the privilege of calling or retiring the debt at some point before the maturity date is reached. While many types of callable agreements grant only the right for an early retirement of the entire outstanding amount, there are some examples of the call provision that allow the issuer to only call a portion of the remaining balance due.

This provision can be implemented in situations where a default on the mortgage has occurred, or other factors have taken place that convince the lender that calling for the remaining amount due is in the best interests of the institution.

You need to review your closing documents to make sure that knocking down your property won't trigger a loan call.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more