Some HML will allow you to do a partial deed release based on a survey which allows you get the collateral released when the property is subdivided.You usually have to subdivided and get parcel # and then refinance the part with the land on it. 2) In Tacoma, I look for R2 zoning with lots over 13,000 sq ft.

You need a COLLATERAL (the house you're going to rehab) and it got to be a good deal, or a house substantially BELOW market value.

The total amount owed to the tax man was half of that, only for one year, taxes are high on commercial properties, yes there is more to the story, but the main points are those, the property place on collateral is another one, the reason for not going to the bank is not because bad relation, quite the opposite, the problem is the credit limit of this person is maxed out, Canada is a lot more extract in credit lending and rating than the USA.    

So I bumped the property value to $35K and the loan amount $25K which was ok, It's a bank foreclosure that's in the redemption period with my Dad, and of course she was frowning on that because she's not familiar with that kind of transaction.She also told me I would need 14K cash at closing, which I told her I had which surprised herShe was trying to get me to do a no collateral loan which of course would be easier but the interest rate is 9.5% for I think 5 years and the monthly payment is $350+....vs. the 30 year which would be $126.She said she has to talk with someone because this is not a conventional loan and she's not sure if she can give me the 30 year....she mentioned gouging??

That is something I am strongly considering doing on the properties that don't have mortgages (can't do it on encumbered properties because the mortgagees require that their collateral be insured, understandably so).

A cross collaterized mortgage, (encumbrance of two or more properties under a single instrument set) is not a conventional structure.  

There is an existing loan on this parcel of land independent of other properties (not cross collaterized)?

The original loan documents seem to indicate that the properties are collateralized at 26% each for 1 & 2 and 48% for 3 for the total initial loan of $325,000.

I will used the 2nd property as collateral for 20% of the down payment.

Often payments can be sold to provide additional cash or the loan might be pledged as collateral for another loan or mortgage.