Chapter XXI - Problems and Issues

Uncovering Problems and Issues

Visiting the Property / Visual Inspections

When there is a Problem

Questions and Answers

Common Problems

Contractor leaves the job without warning

Poor Workmanship / Defective installation or materials or equipment

Unapproved deviation from municipally approved plans

Work done without getting full approvals

Accident at site

Property Damage due to Fire, Flood, etc.

Money diverted from job and not paid to contractors

Borrower has run out of money and cannot finish job

Material delays and/or shortages

Union Disruptions

Exogenous Factors-Supply/Demand and Cyclicality

The Loan Officer and a "Bad" Loan

What to Do

A System for Classifying Loans According to Perceived Risk