Can you sell a 203k loan structured house before the construction is completed? As is? Can the bank apply the renovation funds to the Principal?
We closed on the house Oct 31, 2018. Had very bad experiences with contractors and would rather sell and start fresh at this point. What are our options?
The bank is not being cooperative with giving us a payoff amount minus the construction? Can they do this?
While there are funds in your 203k rehab account, the loan is not yet closed out. No refi or sale.
You will need to finish construction or convince the lender to use the remaining funds to reduce the loan balance in order to close out the loan.
Then you can refi or sell.
Maybe consider using contractors who are accredited as Certified 203k Contractors.