New Build Construction Loan Cancelled before Construction Started

[Kaohuhealani Trueman Jr]

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!

[Jay Hinrichs]

Quote from @Henry Clark:

All in the contract.  No one can give input without documents. 

I think you will find buried in the fine print that if the lender thinks the market has turned they have the right to freeze the loan or cancel it.. paying you back for out of pocket would boil down to reputation mitigation etc.  Keep in mind during the GFC many projects only got 20 30 50% built and the banks pulled out and you were left with skeletons you still see a few in Vegas even today..  there was a huge high rise in Portland that dug out their parking and got to foundation and it stopped it just started up 2 years ago and is finally being completed.. Same thing happened in Honolulu years back that time it was the city putting a stop to building see through structures.