Yesterday while at the office, one of the agents in our office made the comment that he had a neighbor that had taken out a construction loan to build a new house then didn't qualify for a mortgage on that house. He said that he knew of this happening twice in our area. One case in his daughter's neighborhood, the bank holding the construction loan actually evicted and foreclosed on the new home.
I have been unable to verify this, and while it sounds outrageous, I still wonder if this could be true. Has anyone experienced anything like this?