• Buelldozer@lemmy.today
      link
      fedilink
      arrow-up
      19
      ·
      edit-2
      8 months ago

      If that house had a mortgage then the lending bank almost certainly required the use of one. If it had a construction loan it too probably required a title search and certification.

      • ShepherdPie@midwest.social
        link
        fedilink
        arrow-up
        2
        ·
        8 months ago

        I could be wrong, but I thought you couldn’t get a mortgage for a house that isn’t already in a livable condition. That would have come after the thing was completed.

        • GreatAlbatross@feddit.uk
          link
          fedilink
          English
          arrow-up
          5
          ·
          8 months ago

          It may not be the same in the US, but in the UK, you can mortgage a new build project.

          The company releases money in stages as the build progresses, normally.

          • Ranvier@sopuli.xyz
            link
            fedilink
            arrow-up
            7
            ·
            edit-2
            8 months ago

            In the US this could be done with a short term variable loan called a construction loan that releases money in stages as the build progresses. Once finished if it’s not being paid off it would be refinanced into a more traditional mortgage. Mortgages are often pretty different in the US vs UK, most US mortgages are for fixed rates for 30 year terms whereas most UK mortgages are fixed for a much shorter period and then go to variable rates. So you’d be hard pressed to get a bank to agree to a fixed rate 30 year mortgage for a house that doesn’t exist yet.

      • Tyfud@lemmy.world
        link
        fedilink
        arrow-up
        2
        ·
        8 months ago

        Developers don’t mortgage individual houses, they were still trying to sell the house to someone according to the video, and offered to sell it to her at a discount.

        Again, all in the video with all the answers :)

    • girlfreddy@lemmy.ca
      link
      fedilink
      arrow-up
      12
      ·
      8 months ago

      An attorney for PJ’s Construction said the developers didn’t want to hire surveyors.

    • bitchkat@lemmy.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      8 months ago

      they would have had a title company when they bought the land. Building a house on a plot they didn’t own after that doesn’t involve a title company. It was surveyors they apparently cheaped out on.