Construction Finance Modifications and Workouts: Key Considerations for Lenders and Distressed Borrowers
Responding to Project Shutdowns and Delays
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine issues presented for construction lenders and borrowers in the current economic environment. The panel will discuss critical concerns for lenders when dealing with financially distressed borrowers and projects that have been delayed or disrupted. The panel will also discuss essential provisions for construction loan modifications and steps to take if the loan goes into default.
- Impact of supply chain issues and shortage of workers on construction loans and the construction industry
- Communicating with parties to construction projects and construction loans
- Pre-workout agreement
- Assessing the value of the project post-pandemic
- Optional vs. obligatory advances
- Insurance coverage: property insurance, business interruption, business income
- Lender alternatives in the event of default
- Key provisions to include in the loan modification agreement
- Specific issues related to construction loans during the pandemic
The panel will review these and other issues:
- How has COVID-19 impacted ongoing construction project plans and timelines?
- What are the ramifications for borrowers, lenders, and project valuations?
- What are the lender's and borrower's primary concerns in entering into a construction loan modification?
- How should the lender proceed if a construction loan goes into default?
Jason E. Goldstein
Shareholder, Co-Chair Mortgage Banking Group
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from... | Read More
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from national banks to insureds, private money lenders, credit unions, individuals, loan servicers, landowners, pharmaceutical companies, vaping companies, equipment finance companies, brokers and investors. He is Co-Chair of the firm’s Mortgage Banking Group, a fellow of the American College of Mortgage Attorneys (ACMA) and a member of the ACMA Title Insurance Committee. Mr. Goldstein has an extensive legal background in state and federal courts across the country, which includes business litigation, real property related litigation, “private money,” title insurance claims and litigation (as well as CGL, D&O, etc.), escrow claims and litigation and misappropriation of trade secrets litigation. He also handles litigation involving wrongful foreclosure, lender liability defense, leases (commercial, residential and equipment), general contractors, receiverships and judicial foreclosures.Close
John L. Hosack
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales... | Read More
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales and foreclosures. He represents secured lenders and property owners at trial and on appeal in complex real property disputes, including lender liability, fraud, class actions, breaches of contract, wrongful foreclosures, mechanic’s liens, stop notices, judicial foreclosures, receiverships, escrow claims and title insurance claims.Close
Enrique (Rick) Rodriguez, Jr.
Founder and Principal
Rodriguez & Associates
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide... | Read More
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide variety of real estate brokerage, financial advisory, consulting, litigation support and expert witness services to his clients. He advises law firms, development companies, financial institutions and investors on standard lending practices, market rates of interest, and other business transactions which often involve tens of millions of dollars. He is knowledgeable of capital markets and financing transactions and, as a licensed real estate broker, procures debt and equity capital for his clients from financing sources which include banks, life insurance companies, pension funds, REIT’s and conduit lenders.Close