Florida Construction Law Group concentrates in both the prosecution and defense of construction loan foreclosures. In Florida, construction loan foreclosures can become very complex and entirely different from a typical residential loan foreclosures. Typically, construction loans are funded through draw requests, which are based on the progress of the project.
Construction loans contain several ancillary agreements that govern the relationship between the parties involved. Some of these are the construction loan agreement, a construction supervision agreement, a funding agreement, and various other agreements that relate to the construction loan. Quite often, the progress of a construction project is left open for interpretation to the homeowner, developer and lender, which leads to the refusal of funding or insufficient funding. Once the funding is halted, if the contractor is not well funded by other means, the project could be in trouble. Ideally, a lender, contractor or property owner should contact an attorney prior to litigation in order to resolve the progress and payment dispute of the project.
Because of the different facets to a construction loan, the construction loan relationship between the lender, contractor and homeowner lends itself to many difficult and complex issues along with various legitimate defenses that may have not been foreseen at the onset of the relationship. Our firm is often hired to resolve a dispute prior to the institution of litigation. This could save thousands of dollars in interest, penalty, remobilization, costs and legal fees. However, there are times when we are hired to prosecute or defend the lawsuit. Whether you are faced with litigation or your matter is in the early stages of a dispute, please feel free to contact us to discuss your situation.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar