construction contract question

[justaman1972]

What is the name of your state? oh

I was having a home built, it's framed and has a roof. I just got hit with child support and the bank denied my loan now. To make a long story short, am I out of my contract now? can I go look at cheaper homes now? The builder sayed the only only I could get out was if I couldn't get financing, I have not heard back from them since they talked to my bank, I'm sure they are mad...... any advice thank you!

 

[lcannister]

I just got hit with child support and the bank denied my loan now.

"Hit with"??

If there is a financing contingency and the bank turned you down and nothing else is in the contract contrary then yes you can get out of the contract.

 

[justaman1972]

"just hit", I guess that it is a strange phrase for it. The builder saying he needs two denials now and wants me to go through somebody he knows. Can he make me do that?..The budget is way too tight for me now with the child support, I can't afford the house now, I'm scared who he knows will just try and mess with the numbers and get me qualified now. I'm not comfortable with the payment, can they force me to live like that?

 

[lcannister]

can they force me to live like that?

We have no idea because WE can not see the contracts you signed, in their entirety.

 

[justaman1972]

just thought I would try and ask something on here, there is nothing in my contract that say's I have to use their financing or that I even need 2 denials. maybe that is their own guidlines or something I dont know. just thought I would ask to try and get a little insight on it.

 

[lcannister]

Any where in your contract does it state that the purchase is contingent upon you being able to secure ANY kind of financing?

 

[VinnieL]

I would contact an attorney, I have issues and builder, I told I cannot get loan at this point he offered me to finance the project out of his own money, STRANGE YES, but wondering if he in to money laundering?? hey you never know just be careful when you send any notice, letter, discussion about getting out of contract with builder if he is crooked he can ruin you I know I got burned by my builder my belief laws are for builders and not for homeowners

 

[lcannister]

my belief laws are for builders and not for homeowners

These kinds of statements are USUALLY made by those who went into the biggest investment they may make without spending an extra 500 or so to get an Atty or pay an agent to make sure those contracts are NOT slanted toward anyone but themselves. When one relies on the other parties EMPLOYEES, to protect them, then they USUALLY end up making the kind of statement you just did.

With a properly worded contract the OP's issue would be a non issue.

 

[LindaP777]

I just got hit with child support and the bank denied my loan now.

Did you just find out you are a father, or did you think you wouldn't have to pay for the rearing of the child you brought into this world? Why would you think it was a good idea to build a new house when you were not paying child support???

Sorry, I digress. Explain to the builder you no longer can qualify for a loan and will not be able to close. What were the provisions in the contract when you've already been approved for the loan (I would assume before construction started) and the house is this far along?