Construction Loan Addendum

[jamespape2]

What is the name of your state (only U.S. law)? Arizona

I have purchased a piece of property from a mortgage company who was also handling the financing for my construction loan. Since the company was unable to combine the land and construction in one loan, I had to purchase the land first. I had an addendum added to the contract that stated that the mortgage company would purchase the land back if they could not aquire financing within 6 months of the closing on the land loan. 6 months passed and they were unable to get financing based on the terms agreed upon due to today's financing market. The mortgage company said they will purchase the land back, but are looking at 2 options. They are trying to find investors to purchase the land and are looking into refinancing the land back in their name. It has been 30 days already and I do not know if they are really doing anything. Unfortunately the addendum doesn't specify a time frame of when they have to purchase the land back. How long should I give them? Do I need to start looking for legal services?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Arizona

I have purchased a piece of property from a mortgage company who was also handling the financing for my construction loan. Since the company was unable to combine the land and construction in one loan, I had to purchase the land first. I had an addendum added to the contract that stated that the mortgage company would purchase the land back if they could not aquire financing within 6 months of the closing on the land loan. 6 months passed and they were unable to get financing based on the terms agreed upon due to today's financing market. The mortgage company said they will purchase the land back, but are looking at 2 options. They are trying to find investors to purchase the land and are looking into refinancing the land back in their name. It has been 30 days already and I do not know if they are really doing anything. Unfortunately the addendum doesn't specify a time frame of when they have to purchase the land back. How long should I give them? Do I need to start looking for legal services?

**A: that was a lame idea. Yes you need to thire the attorney that you should have hired before getting into this mess.