Construction Loan Gone Bad! Help!

[dougs05hummer]

What is the name of your state? MISSOURI

I have been building a house for 15 months. I had a one year construction loan for $439,000.00 then I got an extention for 3 more months and another $250,000.00.

When the 13 month came around I new that I needed more time and money to finish it. The bank came out after I told them I needed more time and money they decided to stop funding it. I had over $60,000 left to draw from and they kept it. The bank told me to pay the subs out of my own pocket. They said that they wanted paid off and dont want nothing to do with it anymore.
Now, I know a can stop funding anytime. But my problem is that I sold out my inventory from my company and invested into my property. I owned the land free and clear before I started building. I have a total of $184,000.00 of my own money invested. And the house is only 60% finished.
I had it appraised at $1.8mil. I owe $670,000.00. I cannot get anyone to give me a loan because I have all my money invested into this house. I got pre-approved for a end loan. But I cannot get another construction loan.
Now the house has been just sitting for 3 months now. The bank has turn my file over to there lawyers to start foreclosure.
What can I do? My broker friend told me that the bank didnt give me enough money to start with. This is my first house. I didnt know.
I was needing $400,000 more to get it finished. Which would be 60%LTV.
Also note that I didnt miss 1 payment during the 15months.
Is there anyway that I could get my $184,000.00 back? If I had that I could get another loan no problem. And I could get my business rolling again. But rite now I am stuck!

[seniorjudge]

Originally Posted by dougs05hummer

What is the name of your state? MISSOURI

I have been building a house for 15 months. I had a one year construction loan for $439,000.00 then I got an extention for 3 more months and another $250,000.00.

When the 13 month came around I new that I needed more time and money to finish it. The bank came out after I told them I needed more time and money they decided to stop funding it. I had over $60,000 left to draw from and they kept it. The bank told me to pay the subs out of my own pocket. They said that they wanted paid off and dont want nothing to do with it anymore.
Now, I know a can stop funding anytime. But my problem is that I sold out my inventory from my company and invested into my property. I owned the land free and clear before I started building. I have a total of $184,000.00 of my own money invested. And the house is only 60% finished.
I had it appraised at $1.8mil. I owe $670,000.00. I cannot get anyone to give me a loan because I have all my money invested into this house. I got pre-approved for a end loan. But I cannot get another construction loan.
Now the house has been just sitting for 3 months now. The bank has turn my file over to there lawyers to start foreclosure.
What can I do? My broker friend told me that the bank didnt give me enough money to start with. This is my first house. I didnt know.
I was needing $400,000 more to get it finished. Which would be 60%LTV.
Also note that I didnt miss 1 payment during the 15months.
Is there anyway that I could get my $184,000.00 back? If I had that I could get another loan no problem. And I could get my business rolling again. But rite now I am stuck!

I had it appraised at $1.8mil. I owe $670,000.00.


Sell the place....

[justalayman]

Originally Posted by seniorjudge

I had it appraised at $1.8mil. I owe $670,000.00.


Sell the place....

I like this, and he would have over $1M in the bank.

A question for the OP; is your appraisal an actual appraisal of the home as it sits or an appraisal of the home if finished? A speculative appraisal. (which, of course, isn't really an appraisal)

[dougs05hummer]

As it was finished, $1.8mil, didnt want to sell. The appraisel was for the bank, they wanted it. But when we got it,they didnt care!
They also wanted me to get pre-approved for an end loan. I did that! Then they didnt care!

I have done everything they asked me to do. I have the bank on tape telling what to do, and they didnt do what they said whenever I did.(which was to give me more time and money)

[dougs05hummer]

Can you sell a half finished 15000 sf home in two weeks?

[JETX]

Originally Posted by dougs05hummer

Can you sell a half finished 15000 sf home in two weeks?

I can't, but why in the hell would you build a 15,000 sf home without having the funds or committment anyway?? And in MISSOURI!!!

Clearly, something is wrong in your guesstimates.... and the bank doesn't believe them anymore.

And you have "sold out my inventory from my company and invested into my property." Could it be that the inventory you sold was promised as collateral on the loan??
What are your income prospects?? Has your financial condition changed drastically since the initial loan approval??
Clearly, something YOU did has 'spooked' the bank into calling the loan.
Sounds like you were completely upside down (underfunded) the minute you started this 'project'.... and only got worse.

Your only options are:
1) To try to find another bank or 'friend' willing to finance or
2) To try to sell the shell to some sucker, or
3) To let the bank have it back and eat the loss..

You have NO legal case against anyone to support your problem.

[dougs05hummer]

YES MISSOURI! WHATS WRONG WITH THAT? LIKE I SAID, I CAN AN END LOAN ONCE THE HOUSE IS FINISHED. BUT FOR SOME REASON I CANNOT GET ANOTHER CONSTRUCTION LOAN. IT DONT MAKE SINCE! EVERY BANK AND INVESTOR AND LAWYER KNOWS ABOUT MY PLACE HERE. AND THEY ALL HAVE A CONFLICT WITH ONE ANOTHER.
LIKE I SAID, I NEVER MISSED A PAYMENT!
I sold my inventory of cars, because i want to start building homes and get out of the car business. I thought putting money into the house was the way to go. Now I know it wasnt!



QUOTE=JETX]I can't, but why in the hell would you build a 15,000 sf home without having the funds or committment anyway?? And in MISSOURI!!!

Clearly, something is wrong in your guesstimates.... and the bank doesn't believe them anymore.

And you have "sold out my inventory from my company and invested into my property." Could it be that the inventory you sold was promised as collateral on the loan??
What are your income prospects?? Has your financial condition changed drastically since the initial loan approval??
Clearly, something YOU did has 'spooked' the bank into calling the loan.
Sounds like you were completely upside down (underfunded) the minute you started this 'project'.... and only got worse.

Your only options are:
1) To try to find another bank or 'friend' willing to finance or
2) To try to sell the shell to some sucker, or
3) To let the bank have it back and eat the loss..

You have NO legal case against anyone to support your problem.[/quote]

[dougs05hummer]

What Would Happen If I Just Start Taking The House Apart, And Getting It Off My Land? If There Is No Other Way, I'll Just Take The House To The Bank!
Thats What I Will Before It Forecloses!! They Can Sell It Piece By Peice!

[zmavionics]

just a suggestion, may be try calling the realtors in your area and see if they have any investor looking for partnership. When I was in that business we used to have a few investors who were looking for opportunity to make a profit under this situation. Half of the profit is better than losing all of it. you can also run an add in the local paper looking for an investor. In any case you have to put the word out to your friends and other people so some one can be found to help. keeping your situation under cover will work against you.
good luck

[justalayman]

Originally Posted by dougs05hummer

What Would Happen If I Just Start Taking The House Apart, And Getting It Off My Land? If There Is No Other Way, I'll Just Take The House To The Bank!
Thats What I Will Before It Forecloses!! They Can Sell It Piece By Peice!

Well in your first post, all you were after was your $184k. If you take that and add it to the loan amount of $670k you have $854k. Now since the appraisal is $1.8m as is, that gives you equity of $946k. Even with the $400k to finish figured in that would still give the seller a half mil profit.

There is something definately wrong if you cannot get money on this. Either you have a problem or you are building a white elephant, of which the appraisal would have to be wrong.


BTW: the dissassembly thing; if you were serious, I think you will lose much more than your $184k after all is said and done. Those attorney's fees can really hit hard.

Not a good idea and hopefully a vent of frustration.

what you can do is get a hard money loan. or you can try to take equity line of credit against the land

[pojo2]

There is something very wrong with this story and we ain't getting the full story by any means.

justalayman, what a GREAT idea!

His/Her ads should disappear soon.