Need Legal Help (1 Viewer)

[DaveF]

Thanks. That clarifies a bit. Though family has built custom houses, I'm unfamiliar with the contractual mechanisms. My home was built through a national builder and my understanding was that I signed a contract to have a house built. If there was no house built, I wasn't going to close on the mortgage / pay them.

Sounds like a very bad situation -- entrusting someone else with $X00,000, hoping they do the job, and having no legal recourse if they don't.

 

[drobbins]

My wife & I are currently building a home and we are the general contractor. We are almost finished and will move in before the end of April. Our bank gave us a building loan based on the design appraisal. We paid the contractors as they completed work. Not before hand. The bank released money to us as the house was built. They checked up on the progress regularly . This system is supposed to prevent problems. It sounds like your bank inspector did not know what he was doing.
My first house I lost due to a job ending & having to move to another state. The day I put up a for sale sign in the yard, the joining house was boarded up. I made payments for 6 months while trying to sell it, but finally had to stop. After that, it took me 2 years to give the house to the bank (a voluntary deed in lieu) I would not be too worried about a deed in lieu happening quickly. You can also make slight payments showing to show that you are trying and that would probably make the process last longer. I would not put any more on credit. That is only increasing your risk and decreasing the banks. I would think that the bank would also have an interest in seeing the project completed because of their investment. That is my thoughts, but I am no expert. Did you approve the draws? Do you have a lot invested other than the 20K. I think a lien only affects you if you go to sell the property?

 

[Jim Sentry]

I have at leat 60K cash invested plus whatever payments have been made. I reviewed the Appraisal. he had 5BR not 3, His comps were all o/s a 1 mile range, 2 were over 4 miles away. His net adjustments on 1 comp exceeded 18%, per code they should not exceed 15%. the sketch of the property the Appraiser made does not match the plans I provided to Bank

I am going to complain first to State Board of Appraisers and after they approve my case I will go after bank.

Still need a Lawyer who will work on contingency. I want Bank to buy back house and make me whole again. That will take about 320-330K considering mortgage and cash out of pocket.