Posted by Dan on January 31, 2002 at 19:22:04:
No a performance mortgage is not what you need.
What needs to be done is a mortgage is placed on another property that can be walked to the new property when the constuction is done. Or the new property is refinanced to pay off the note on the other property.
A performance mortgage Secures performance of a agreement.
Or another way to do it would be put a first mortgage on the land for the final amount and cross colateralize it with another property that gets released when the subject property is complete and signed off by a appraser for the value needed to secure the underlying at a predeterminded LTV.
Hope this helps