Financing for demolition and rebuild

[Kyle Wainwright]

How does the financing work for a house purchased with the plan to tear down and build a newer multifamily building on the lot?  Does the original mortgage have to be paid in full since the collateral will essentially be removed during demolition?  Are there any loan options that don't require the original mortgage to be paid off first?  Any other things to consider on such a project?

Thanks!