Bank messed up -bad

[tonya1970]

What is the name of your state? Alabama

We recently built a house and did a construction/perm loan. We did the closing of the loan before starting construction and were approved for a certain amount. It seems that the bank cut a check to the builder for 16,000 over what we were approved for and didn't notice the error until a month and a half later. We were told we had 38,000 and needed to get it - then an hour or so later we were 16,000 over. My point of view is that the bank gave too much money and are out that money. The bank is trying to get the builder to give the money back (3 months later) and us do a second mortgage. If they had told me we needed to pay the builder but didn't have enough money I would have gone and refinanced. They didn't and now I feel I am getting stuck paying for their bad banking practices.

Any ideas (yes we have an attorney but I'd like other opinions)

Originally Posted by tonya1970

What is the name of your state? Alabama

We recently built a house and did a construction/perm loan. We did the closing of the loan before starting construction and were approved for a certain amount. It seems that the bank cut a check to the builder for 16,000 over what we were approved for and didn't notice the error until a month and a half later. We were told we had 38,000 and needed to get it - then an hour or so later we were 16,000 over. My point of view is that the bank gave too much money and are out that money. The bank is trying to get the builder to give the money back (3 months later) and us do a second mortgage. If they had told me we needed to pay the builder but didn't have enough money I would have gone and refinanced. They didn't and now I feel I am getting stuck paying for their bad banking practices.

Any ideas (yes we have an attorney but I'd like other opinions)

This is quite irritating and a lot more common than you know. Anyway, you still have to pay your bills and if they gave you too much money, it is not yours.

If that doesn't answer your question, then please re-phrase it. I am really not sure I understood it.

[tonya1970]

Sorry - I ramble. The bank cut a check for over the price we were approved for and now want us to put this in our mortgage. We have a mortgage that was closed on before the house was built for a set amount. I do not believe they should have been able to go over our agreed price with out letting us know.

Originally Posted by tonya1970

Sorry - I ramble. The bank cut a check for over the price we were approved for and now want us to put this in our mortgage. We have a mortgage that was closed on before the house was built for a set amount. I do not believe they should have been able to go over our agreed price with out letting us know.

If you got the money and used it, you owe it.

[tonya1970]

Thanks - they paid the builder the money and obviously can't subtract so now I'm stuck. Just my luck...... 3

Oh and just so I don't look like a sleeze - I would have refinanced if they had let us know about it at the time. I can't wait until they sell my mortgage....

Originally Posted by tonya1970

Thanks - they paid the builder the money and obviously can't subtract so now I'm stuck. Just my luck...... 3

Oh and just so I don't look like a sleeze - I would have refinanced if they had let us know about it at the time. I can't wait until they sell my mortgage....

Get it refinanced now. No, I do not think you are a sleaze; I think the banking system is a miracle of modern America...the miracle is that it has not collapsed.

[tonya1970]

I am looking to refinance once we do the loan modification. I agree about the bank - this one had just gotten out from under the Office of Thrift Supervision ( found out after all this) and the loan officer has resigned under duress.