Remodeling your house with money from a bank loan? Homeowners Beware!
Homeowners that rely upon their banks to monitor construction loans and
disbursements to contractors are in for a rude awakening.
Many banks that offer construction loan monitoring and assistance in oversight
of the construction project have little or no expertise due to the fact
that many of these loans are monitored by young inexperienced bank officers.
While homeowners are told that milestone payments will be verified by
their construction loan officers prior to funds distribution, that lender
oversight is often worthless.
In the past, when bankers were professionals that had backgrounds in finance
and years of experience dealing with sophisticated loans and real estate
developments, their expertise was invaluable and actually helped to protect
their customers projects from being drained dry by unscrupulous contractors
prior to completion.
Today with the current sad state of most banks, many of the bank employees
are inexperienced and about as competent at assessing a real estate development
deal as they would be running a rental car agency. I.e. If the damage
to the car exceeds the size of the circle that rental car companies supply
to their employees, the renter is responsible for repairs. Unfortunately,
banks cannot provide a standardized reference for construction project
milestones so that the bank personnel evaluating the loan disbursement
has any guidance, and they lack the knowledge to comprehend the request
for a draw. In other words, the banks do not generally have trained or
experienced personnel that are competent to determine if a project disbursement
Mike Panish, Construction Expert Witness, receives many calls a month from
homeowners involved in construction fraud situations where the building
contractor has absconded with their construction loan funds and left them
with an unfinished project and no money left. Mr. Panish has been retained
in many contractor fraud claims across the country that have involved
poor oversight by lenders.
about Mike Panish’s construction fraud cases and contact him to
help you determine if you have been a victim of an unscrupulous building
contractor and inexperienced construction lender.
(888) 902-4272 for more information.
here to send us a message.