The simple answer is no. If you still owe on your mortgage, then the bank actually owns your home and you cannot simply demolish the collateral you are using to secure the loan. However, there may be ways around this if you work with your mortgage company to create a plan that may include a new mortgage through a renovation loan, or construction-to-permanent loan. Either way, you need to contact your mortgage lender before doing any major renovations on your home if you still owe on the mortgage.