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If you have a 12 month construction only loan that the project did not get completed in the 12 months and the borrower is requesting to extend and increase the construction loan what disclosures need to be provided? Do they have to submit a new application and go through the full disclosure process? Any help is appreciated.
How you proceed will be determined by your current documents and by your bank’s procedures. Some lenders accomplish an extension of the term and an increase in the loan amount using a modification agreement; others refinance the loan. A refinance triggers new disclosures. Generally an extension/modification agreement does not trigger new disclosures.
How you proceed will be determined by your current documents and by your bank’s procedures. Some lenders accomplish an extension of the term and an increase in the loan amount using a modification agreement; others refinance the loan. A refinance triggers new disclosures. Generally an extension/modification agreement does not trigger new disclosures.
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