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Banks responsibility in construction loan

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blairbear

Guest
What is the name of your state? Montana Does the bank who loaned for my construction have a responsiblity to inspect and insure that the construction of the home is on the up and up? The loan officer was aware of the general contractor I hired to build my home, and his previous ineptitude at building. The GC has been sited for putting in plumbing without a permit or experience. The bank has worked with this GC before, has had problems with him before, the Board of Industry and Labor has sited him many times before, but nothing has been done to stop him. The plumbing has to be completely redone. My home is in the final stages of completion, the GC overcharged me in the thousands, (I have proof), I have no more money left to make corrections. Does the bank have responsiblity in this? I am planning to file criminal fraud charges against the GC, but he has no financial wherewithal to pay for the repairs. Also, does the state of Montana have some responsibility in this, since they have a 6 year history of this guys screw ups, and didn't stop him? The guy has a current contractors license.
BlairBear
 


HomeGuru

Senior Member
blairbear said:
What is the name of your state? Montana Does the bank who loaned for my construction have a responsiblity to inspect and insure that the construction of the home is on the up and up? The loan officer was aware of the general contractor I hired to build my home, and his previous ineptitude at building. The GC has been sited for putting in plumbing without a permit or experience. The bank has worked with this GC before, has had problems with him before, the Board of Industry and Labor has sited him many times before, but nothing has been done to stop him. The plumbing has to be completely redone. My home is in the final stages of completion, the GC overcharged me in the thousands, (I have proof), I have no more money left to make corrections. Does the bank have responsiblity in this? I am planning to file criminal fraud charges against the GC, but he has no financial wherewithal to pay for the repairs. Also, does the state of Montana have some responsibility in this, since they have a 6 year history of this guys screw ups, and didn't stop him? The guy has a current contractors license.
BlairBear
**A: you, as the homeowner bear the main responsibility to insure proper construction either by managing the project or by hiring a construction consultant, architect/engineer or home inspector to monitor the progress of construction from start to finish. The bank generally hires their own inspector/appraiser to conduct progress inspections to protect THEIR interest.
Why did you hire this GC given his/her terrible history?
 
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blairbear

Guest
Banks responsibility in construction

The reason I hired this contractor is that his poor history is not available as a record in Montana. I did not know any of this, until the plumbing inspector was called in to look at the fact that this idiot didn't even put in any vent pipes! I checked with other home owners about the contractor, who all said they loved him; three of them. The bank however did know of him. I asked them after I told them that I was hiring him if they knew any reason I should not use him. They told me they didn't.
 
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blairbear

Guest
my responsibility

So, does that mean I also need to hire an attorney to watch over the attorney I hire for any given job? Where does this stop? I hired a professional general contractor to do the construction job that I have no expertise in. I am also required to hire someone to watch over this person? Does this make any sense to any one else?
 

HomeGuru

Senior Member
Re: my responsibility

blairbear said:
So, does that mean I also need to hire an attorney to watch over the attorney I hire for any given job? Where does this stop?

**A: don't get stupid.
******
I hired a professional general contractor to do the construction job that I have no expertise in. I am also required to hire someone to watch over this person?

**A: yes you would be in this case.
******
Does this make any sense to any one else?

**A: so tell us where is the project architect and engineer? Look at your building plans, who stamped the plans as the designer of record? Look next to the stamp at the attestment and tell us what the words say above the designers signature.
 
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blairbear

Guest
Home building nightmare

Don't be stupid! You have obviously been raised with a silver spoon in your mouth! There was no architect.
 

JETX

Senior Member
"The GC has been sited for putting in plumbing without a permit or experience."
*** And those are things that YOU should have asked (or an experienced architect or attorney would have) asked BEFORE you contracted with him.

"The bank has worked with this GC before, has had problems with him before, the Board of Industry and Labor has sited him many times before, but nothing has been done to stop him."
*** There you go.... your own local board was aware of his 'problems', why did YOU not research this guy properly at the bid stage???

"The plumbing has to be completely redone."
*** All of your problems sound like they are with the PLUMBING contractor and not the GENERAL contractor as you are trying to claim.

"My home is in the final stages of completion, the GC overcharged me in the thousands, (I have proof),"
*** And we assume that is a separate issue to the PLUMBING problems, huh??

"I have no more money left to make corrections. Does the bank have responsiblity in this?"
*** No. The banks ONLY responsibility is to provide the funding that they agreed, at the time they agreed, and to protect THEIR investors against your default.

"I am planning to file criminal fraud charges against the GC, but he has no financial wherewithal to pay for the repairs."
*** Go ahead and plan your criminal action. From what you have said here, there is no evidence of criminal conduct..... just incompetence.

"Also, does the state of Montana have some responsibility in this, since they have a 6 year history of this guys screw ups, and didn't stop him?"
*** Again, no.

"The guy has a current contractors license."
*** Okay.

Your post is full of contradictions. You seem to be trying to blame everyone else for KNOWING of his incompetence and not doing anything about it, yet you complain that YOUR failure to do due diligence in hiring YOUR contractor is due to no one knowing about it. Simply, if the world knew as you claim, you should have found out BEFORE contracting with him. I think that there is far more to this story than you are telling..... such as you picked the lowest cost without ANY investigation or review.

And in reviewing your thread, it is obvious that you are not interested in hearing the TRUTH about YOUR failures, but far more interested in trying to blame others so that you can feel that you are the victim here. So, I am fully expecting you to do the same with my post.
 

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