Banks and lenders of construction loans cannot afford to be as trusting as they were years ago. Previously, it seemed even the bad loans got paid, so errors in loan documents or or lapses in oversight didn’t get caught. The result was lenders got to be too trusting and somewhat lazy.
Construction lenders must be vigilant. You don’t want to advance a substantial amount of money only to realize there are major issues after the fact. Devoting a little time and due diligence to each project can save a lender time, money and embarrassment. Below are a few tips:
- Get to know your customers and their projects
- Occasionally drive past the construction site to confirm work is being performed
- If the site doesn’t appear to be progressing in accordance with the financial draws that have taken place, conduct a closer inspection
While these steps seem simple, it is easy for them to fall through the cracks when you are busy. Just remember, however, a simple drive-by could actually save you millions of dollars.
If you need assistance collecting a construction loan, contact Windtberg & Zdancewicz today.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of creditors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.