Helvetica Servicing Inc v. Michael S Pasquan

Summary

The court held that whether a loan qualifies as a construction loan entitled to anti-deficiency protection, rather than a nonprotected home improvement loan, is a fact-intensive question. Courts must assess the totality of the circumstances, including five nonexclusive factors, rather than require that the residence have been built entirely from scratch. Because the trial court did not independently make that factual determination, the court vacated the appellate decision and remanded for findings under the clarified framework.