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msgracesegovia · Joined: 05 Jan 2008 Posts: 1 1.46 Dollars($)

My boyfriend and I are going to build a home on land that he currently owned with his deceased wife, who had 2 kids of her own and 1 child with both of them. She had no will so an affidavid of heirship was filed and the kids have to be paid before any house is built to have the land in his name only. The mortgage company is confused and not sure what to do because he is also behind in his taxes. The loan is for 100,000, but the home will be for only 85,000. The remainder of the money was for the taxes and for the surviving children as per court ordered. Should we get a 15000 dollar loan to pay off the kids and the taxes prior to the construction of the house? Can the loan be included in the mortgage? And can the new loan pay off a lien on the land which we will probably have when we apply for the loan?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Msgracesegovia,

Welcome t the forum,

First of all you should pay off the taxes that your boyfriend owes and try to pay the kids. Then if you can, pay off the liens.

Regarding including the new loan with your current mortgage, you have to talk with your lender. But I don't think they will allow it now. But you can refinance to combine the loans.

Feel free to ask if you any further questions

Best of luck,
Larry

blue · Posted: Sat Jan 05, 2008 7:11 pm Post subject:

Hi,

Welcome to Mortgagefit discussion board.

If you want to combine the two loans, refinance is a good option. But you may not do it immediately after taking the new loan for building the home. May be after 6 months you can do it.

Do let me know if you have any other questions.

Thanks
Blue

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

The 15000 can be included in the new mortgage if there is enough equity in the property. The lender needs to treat is as a payoff on the land. If the lender is having a hard time figuring that out, I would suggest finding another lender. Especially with construction, I wouldn't trust the loan with a lender that couldnt figure this out.

evolovik26 · Posted: Tue Jan 08, 2008 8:02 am Post subject:

If you getting a construction loan then the taxes and other liens need to be cleared from the land before you can get the loan. So you can get a land/lot loan and take care of what you owe, then go ahead and get a construction loan for the home.

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affidavid of heirship and new loan app