Construction
Construction Loan Disbursement, an essential service for homeowners, lenders and contractors, keeps your project on track by providing a centralized, third-party source for managing payments and ensuring the successful completion of construction milestones. Minnesota Abstract & Title Company has the experience and knowledge to manage your construction project, whether it is ground-up, tenant finish work, or rehabilitation.
With our state of the art and customizable construction disbursement program, we are able to monitor line item usage using the Sworn Construction Statement and funding sources for the project. We provide balance sheets with each draw so you can view the progress of the project along with the current principal loan balance. With compliance verification and lien waiver auditing we make sure that funds are disbursed properly, in a timely manner, protecting both the homeowner and lender from possible future liens. Having the ability to input specific information from the Sworn and subsequent draw requests also grants us the ability to do all 1099-Misc reporting for direct payments to subcontractors and suppliers.
Whether your project is funded in one stage or many, Minnesota Abstract & Title Company will provide the services necessary to ensure that funds are disbursed according to your contract and project requirements. We provide continuous communication and up-to-date information each step of the way.
Mechanics’ lien claims may compromise the mortgage. Lenders require that its mortgage is in first lien position, after property taxes. They may also require extended loan policy coverage throughout the construction project. With Minnesota Abstract & Title Company handling the disbursement of construction funds, we search the public records with each draw request to ensure clear title before we disburse funds. If a lien arises on the property we immediately notify, and work with, all parties to remedy the situation prior to disbursement of the loan funds.
Minnesota Abstract & Title Company provides additional services for construction projects that do not include a lender or title insurance. With our worry-free Escrow services, we act as a liaison between the general contractor and homeowner, reviewing documentation and disbursing the homeowner’s funds as if we were giving title insurance to a lender. Auditing and Reconciliation Services are tailored specifically for the do-it-yourself contractors and homeowners who are remodeling or rehabbing properties. We’ll handle the formalities, while you focus on completing the project.
*Sworn Construction Statement
*Draw Request
*Lien Waiver