Overview of the Workout Process: Construction Loan Workouts

Overview of the Workout Process: Construction Loan Workouts

In this white paper, Barry F. Levin, vice chair of the Business Department, provides a comprehensive overview of the workout process involved when a construction loan defaults. He covers the different roles of parties involved in construction projects, including construction lenders, permanent lenders, obligors, architects, general contractors, subcontractors and sureties, and gives construction lenders warning signs that a project might be in jeopardy.
The paper further provides a detailed explanation of the construction loan workout process covering due diligence, workout documentation and negotiations.