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Updated almost 2 years ago,

User Stats

8
Posts
5
Votes
Kaohuhealani Trueman Jr
  • Rental Property Investor
  • SF Bay Area
5
Votes |
8
Posts

New Build Construction Loan Cancelled before Construction Started

Kaohuhealani Trueman Jr
  • Rental Property Investor
  • SF Bay Area
Posted

Hello all,

Looking for any advice and insight on steps to take to recoup funds used to close on a construction loan that would eventually be cancelled prior to the construction even starting or the maturity date.

Background: Back in Jan 2022 I was working with a turnkey company and bought a lot and closed on a construction loan with Center Street Lending and paid a bunch of fees and closing costs. Then about 8-9 months go by while waiting for permits to get approved to begin building, I get a notification from the build team that the lender has backed out and cancelled my loan. Is there any way to recoup those funds that I used to close the loan since Center Street Lending didn't follow through on their part of the deal with the loan? I feel like I've been robbed and don't think this is fair, so any insight or advice is much appreciated!

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