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Is a new home collateral for a construction loan?

Posted on: 29th Sep, 2008 12:58 pm
I am about to take out a construction loan on a new dwelling. If I should default, could they take away my house?
Hi jfworman!

Welcome to Forums!

Yes, you can use your new home as a collateral for the construction loan. Yes, the lenders can take away your home, i.e. they can sell your home and recover the debts in case you default.

Feel free to ask if you have further queries.

Sussane
Posted on: 29th Sep, 2008 09:35 pm
Yes, they may either take away your new house or can place liens on it.
Posted on: 02nd Oct, 2008 03:41 am
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