Arizona Construction Financing & Construction Loan Attorney
In many construction projects, there are two types of financing involved. First, is the construction financing that is used to build the house or commercial building. This is usually short term financing. Second, is the long term financing for the property. In a residence, this may take the form of a 30 year amortized loan. In commercial buildings, the financing may only be for a 5 year period, which must be renewed.
Our firm helps clients settle both types of debt. If your construction project didn’t go as planned, or market conditions changed, you may need to negotiate the debt. We negotiate large reductions in construction debt, helping clients settle & eliminate the debt without the need for bankruptcy. Here are a couple types of construction debt we help with.
Residential Construction Loan Debt Settlement
Building your dream home or any custom home often requires construction financing. Even with lending much tighter these days, construction loans still get made. There are a variety of reasons a construction loan can go bad, here are a few:
- Construction costs or budget went up and you’re stuck in the lurch of not being able to finish the project because you need more money, and not being able to refinance because the construction project isn’t finished.
- During the course of construction, the market values declined, and you aren’t able to refinance, leaving you stuck in a higher interest rate construction loan.
- Perhaps there were issues with the contractors and now there are mechanic’s liens to deal with.
- Or maybe the bank is simply refusing to work with you and doesn’t want to lend more money.
If you have a residential property under construction and are stuck in a construction loan or with construction financing debt that you are struggling with, we can help. In some cases, you may not be protected by Arizona’s anti-deficiency statute, which means that if the property goes to foreclosure you could be liable for the difference between the foreclosure auction price and the debt amount.
Our attorneys are very knowledgeable about Arizona construction law and mortgage law and is able to help clients navigate through this difficult area. Our firm helps clients settle residential construction loans without bankruptcy.
Commercial Construction Loan Debt Settlement
A commercial construction loan is a different animal altogether. In fact, the stakes are usually higher with construction financing on a commercial building. Often, the owner has a tenant waiting for construction to be completed or has so much money into the project that even minimal delays in the construction can have disastrous consequences.
With commercial construction financing, there is a lot more entitlement work, easements that are needed, parking restrictions to deal with and a wide variety of factors that can delay or derail a construction project.
If you or your business finds itself in a commercial construction loan going bad, or the bank won’t work with you, we can help. Our firm understands the law, the documents and the legal options. We negotiate large reductions in debt without bankruptcy.
Call today for a free consultation with a construction financing attorney.