Construction Loan Modifications and Workouts: Key Considerations for Lenders and Distressed Borrowers
Responding to Project Shutdowns and Delays During the Pandemic
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will examine issues presented for construction lenders and borrowers in the wake of COVID-19. 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 COVID-19 pandemic on construction loans and the construction industry
- Effect of stay-at-home orders and other requirements--impact on government inspections
- Communicating with parties to construction project and construction loan
- Pre-workout agreement
- Assessing value of the project post-pandemic
- Optional vs. obligatory advances
- Insurance coverage--property insurance, business interruption, business income
- Lender alternatives in event of default
- Key provisions to include in 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 primary concerns of the lender and borrower in entering into a construction loan modification?
- How should the lender proceed if a construction loan goes into default?
Michael C. Flynn
Co-Chair Mortgage Banking Group
Mr. Flynn is a member of the Firm’s Commercial Finance Practice Group and Mortgage Banking Group, and Co-Chair of... | Read More
Mr. Flynn is a member of the Firm’s Commercial Finance Practice Group and Mortgage Banking Group, and Co-Chair of Buchalter’s Financial Services Regulatory Group, and its Title Insurance & Escrow Industry Group in the Los Angeles office.Close
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