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Do events of default occur on a construction loan?

April 26, 2017Construction Default events loan occur

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Do events of default occur on a construction loan?

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Events of default do occur on construction loans. The most common event of default on construction financing is a non-monitory event of default. This is a list of some of these events: a. Lien or Stop Notice on a construction project b. Construction Budget shortfall c. Permits have not been issued after 30 days of closing d. Construction has halted for more than 30 days e.