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When reviewing loan documents, what are some issues the developer should watch out for?

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When reviewing loan documents, what are some issues the developer should watch out for?

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Fries: Lenders like surveys. They want to know what’s going on with their property. The developer should try to limit the number of surveys requested by the lender to two – one at the beginning of the project and the “as-built” survey at the end. Q A developer has defaulted on a loan. What are the options? Cappello: You’ve got a lot of workout options. But the first thing you have to do is look at whether the lender has been involved in causing you to default. If the lenders’ actions by either not paying certain tranches or slow pay on the subcontractors are causing you the inability to service the loan, then you may have a lender liability claim. … They first have to find out if they have a lender liability case because the first thing the bank’s going to do is put a release in front of them in a workout case. As soon as that is signed, there’s no lender liability case any longer. On the other hand, if you don’t have any lender liability issues, then your workout options are whatever

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