Disbursements made “tomorrow” are based on a construction loan made “yesterday.” A loss of lien priority could result in a “loss of your loan.”
What steps can be taken to avoid mistakes in the disbursement process? Join us in a discussion of seven critical points:
- Should title, disbursement company or lender make disbursements?
- To whom are funds disbursed? Borrower? General Contractor / Sub-Contractors?
- Structuring the loan / disbursement process to avoid or limit problems
- Failures to obtain mechanics lien waiver upon payment
- What about a loan default? Stop all disbursements?
- Additional endorsements to title policy?
- What are related issues in loss of lien priority?
Construction loans span (sometimes long) periods of time. Much can happen. Many of the worst loan problems center around the funds disbursement issue.
Join our panel of experts and develop your “set of plans” to better understand and possibly avoid mistakes and their consequences.