Broken priority situations occur when construction has begun prior to the loan closing of our loan. This can add an additional layer of mechanic’s lien related risk to the financing transaction for the lender that they are often unable to accept. A mechanic’s lien is a security interest in the title to the property for those who have supplied labor or materials. Under Arizona law a Mechanic’s Lien can be recorded within 120 days of the work being completed that takes priority dating back to the onset of work. This type of loan could be started by a successful business person who owns a lot free & clear and pays for construction costs out of their own pocket. This scenario may delay construction if funds are not available when needed.
We can provide financing quickly to complete the project in a timely manner. Our experience allows us to mitigate this risk and provide financing in these situations where others cannot. Therefore, if funds run out before the project is completed, the completion of the project is moving too slowly, or if you are interested in acquiring a project in partially constructed condition, then we can help bring the project to completion.
