Construction Lenders: Keep Your Priorities Straight!
Real Estate Partner Todd E. Soloway and Counsel Luisa K. Hagemeier’s article “Construction Lenders: Keep Your Priorities Straight!” appeared in the November 9, 2011 edition of the New York Law Journal.
According to the article, the financial crisis has placed a dark cloud over a vast amount of construction projects and, rather than commence a foreclosure action, increasing numbers of construction lenders are attempting to salvage value by modifying the terms of their loans to developers. However, pursuant to New York Lien Law §22, if done incorrectly, modifying terms of a building loan can cause the construction lender to sacrifice priority of its building loan mortgage lien over all later-filed advances made on the building loan, whether filed before or after the modification.
In the article, Soloway and Hagemeier, discuss §22 and the proper filing procedure to adopt when modifying terms of a building loan.
To read the full article, click here.
