This is such a serious problem that I feel obliged to talk about it. It happens a lot in construction financing. They lend the money just to scoop lender fees on the total loan amount and then stop lending. So the loan might be One Million and they will grab $40K in fees, maybe release a couple hundred thousand. And then stop lending and make up phoney baloney reasons for not lending. Here are some of the most common excuses these creeps make:
“OH, WE JUST DON’T HAVE AN APPETITE FOR THE LOCATION ANYMORE, SORRY BUT WE JUST DON’T SEE THE VALUE”
“I’M SORRY BUT I COULDN’T TAKE YOUR CALLS FOR MONTHS BECAUSE I WAS ON VACATION”
“WE DON’T LIKE THE BUILDER, WE LOST FAITH IN HIM”
“THAT COLOUR OF SIDING IS REALLY UGLY AND WE HATE THE BRICK, WE HAVE LOST CONFIDENCE IN YOUR PROJECT”
Seriously these kind of predatory creeps are out there all over the place. Make sure your broker knows the lender and get a clause in the contract that promises all the fees will be refunded if the faker tries to exit the construction draws for flippant excuses. They’re only interested in fees and they don’t care if they put you in harms way. And some of them want you in harms way so they can scoop your property. BE CAREFUL WHO YOU DEAL WITH when applying for a construction loan.