Home Building Delayed by Developer in Foreclosure

[elmore686]

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

We are currently in a situation where we have a (paid-for) lot in a planned neighborhood where the developer is facing foreclosure. We are trying to proceed with building our home on our lot, but are being delayed due to the covenants requiring our home plans to be approved by the "design board." The developer has laid off all the employees, ceased all neighborhood upkeep, and has made it clear, through a laid-off real estate agent (our only point of contact) he does not plan to approve plans/resume as usual until the bank issue is resolved. When we tried to submit plans for approval, we were told we'd have to wait about 2 months (when all is likely resolved) do to so.

We don't believe we should have to wait at the developers mercy. How should we proceed? What are our rights as property owners?

 

[tranquility]

You wouldn't even get to court in two months. If you believe the developer, accept the delay. If not, get an attorney and see where you can kick the developer to make him move.

 

[HomeGuru]

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

We are currently in a situation where we have a (paid-for) lot in a planned neighborhood where the developer is facing foreclosure. We are trying to proceed with building our home on our lot, but are being delayed due to the covenants requiring our home plans to be approved by the "design board." The developer has laid off all the employees, ceased all neighborhood upkeep, and has made it clear, through a laid-off real estate agent (our only point of contact) he does not plan to approve plans/resume as usual until the bank issue is resolved. When we tried to submit plans for approval, we were told we'd have to wait about 2 months (when all is likely resolved) do to so.

We don't believe we should have to wait at the developers mercy. How should we proceed? What are our rights as property owners?

**A: since there is no design board, you wither wait or if the CC&R's have design guidelines, you gamble on taking the risk of proceeding. And then getting notice later to make changes etc.

 

[FlyingRon]

Absent the developer or a existent HOA (usually not formed until a certain number of the lots are sold), who is going to enforce the covenants? Believe me, after the house gets built there's not a whole lot that can be done about it. We have a technically non-conforming house in our neighborhood and even with the active HOA it wasn't possible to stop nor retroactively fix things.

 

[tranquility]

Absent the developer or a existent HOA (usually not formed until a certain number of the lots are sold), who is going to enforce the covenants? Believe me, after the house gets built there's not a whole lot that can be done about it. We have a technically non-conforming house in our neighborhood and even with the active HOA it wasn't possible to stop nor retroactively fix things.

Deeded CC&Rs have been enforced by others under them when a board has ended or not been started. They have standing under certain conditions. Especially when it is not certain the developer will disappear, it seems quite a roll of the dice to bet a house on.