If a developer defaults is the bank required to complete construction to make an appraisal valid?

Raw land appraisal was based "subject to" the completion of roads and amenities that were never built. The bank loaned money based on this, inflated amount. The development company went bankrupt.

No, the bank is not required to finish it. They foreclose then sell it. They are not in the property development business, they can't just and do so, their business license does not cover this.

This happens a lot, one reason they required a 25% cash down before they would lend money.

In the situation of your question, even if they could complete it, it sounds like it would be an idiot idea, just throwing more money down the drain.

No, if you were in the process of having a home built, it could be a real dilemma to get it all settled. The bank is not going to put anymore money in the project. You maybe should consider hiring an attorney right way to represent you, this isn't going to be a fun process for you. I am sorry.

it depends on just how close it is to completion. Many will hire another contractor to finish the project if close enough to sell and re-coupe some thing