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A comment on Launch HN: Homestead (YC W20) – Lot-splitting to build new housing supply. Parent comment

Re:Launch HN: Homestead (YC W20) – Lot-splitting to build ne... by theptip on Friday January 07, 2022 @06:29PM (#29846442)
Presumably the homeowner doesn’t own the land, they have a mortgage. So their bank has first lien on the land. You could take a second lien but you’re behind the bank on the mortgage.
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Re:Launch HN: Homestead (YC W20) – Lot-splitting to build ne... by toomuchtodo on Friday January 07, 2022 @06:32PM (#29846465)
Right, you’d take a junior lien position and not extend credit beyond a certain percentage of total land value (aggregate loans to value), or you’d pay off the first, provide a financing bridge, and originate a new first, securitizing it to finalize the transaction.
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