What is the name of your state (only U.S. law)? Arizona
I entered into a contract with a local builder in June 2007 as a home investor. The original contract stated that I was considered "silent investor and sole role is to finance said property with the builder." It also stated that the builder "has all say in said home (investment) and upon completion and sale of said project, (you) will be given the sum of $25,000.00. The time to build said project will be about 4 months after, a building permit is received", which was obtained within 5-6 weeks. "With the program, you agree to one year. This gives the builder up to 8 months to sell said property, most will sell in 1-3 months with the market the way it is."
It has now been 14 months. The home was just completed last week, and the builder has one remaining draw of $10,000.00 that he is requesting we sign and return to him. We have also been told that we are now responsible for selling the home, and property values have dropped in Arizona, so that we now owe more on the construction loan than the property is worth. Do we have any recourse, and what how can we proceed? We have also just received an invoice for the first interest payment on the loan. Any advice would be appreciated.
I entered into a contract with a local builder in June 2007 as a home investor. The original contract stated that I was considered "silent investor and sole role is to finance said property with the builder." It also stated that the builder "has all say in said home (investment) and upon completion and sale of said project, (you) will be given the sum of $25,000.00. The time to build said project will be about 4 months after, a building permit is received", which was obtained within 5-6 weeks. "With the program, you agree to one year. This gives the builder up to 8 months to sell said property, most will sell in 1-3 months with the market the way it is."
It has now been 14 months. The home was just completed last week, and the builder has one remaining draw of $10,000.00 that he is requesting we sign and return to him. We have also been told that we are now responsible for selling the home, and property values have dropped in Arizona, so that we now owe more on the construction loan than the property is worth. Do we have any recourse, and what how can we proceed? We have also just received an invoice for the first interest payment on the loan. Any advice would be appreciated.