The bank works on a draw schedule. 20% when foundation is in and decked, 40% when fully enclosed, 30% rough wiring, plumbing and complete heating is installed and 10% when 100% complete. You pay 8% interest per month on all the "draws" plus your monthly escrow for taxes, homeowners etc. When the house is complete it rolls into a conventional mortgage. The bank inspects before each draw is released. The draw checks are made out to us and then we sign them over to the builder (when we're ready [img]/forums/images/icons/grin.gif[/img] )
I have spoken with the bank and they need to remain impartial as far as the builders go. They can't get involved.
Well it looks like they will not get everything done before Monday. The site super said the asphalt guy is 3 weeks out. I said "then why didn't you call him 3 wks ago?
Oh and the walkway is fine says the super. When I asked if it was poured on 4-6" of compacted gravel the reply was "Its not going anywhere......"
Sorry to see you having builder problems. Be certain you are in a club with thousands of members (I am a gold club member myself). I have had two homes built and am contemplating a third,if I my wife doen't divorce me first.Like you I checked before building and was floored when the builder pulled the same type of antics you explained. On my current home the relationship between my builder and myself was so poor in the end, that he abandoned the job for a period of time and I panicked. I called him and asked when he was going to finish repeatedly. When it was obvious he was being an **** I went to his house and confronted him.He said he was "finished" and would not be back, and that furthermore if I tried anything he would file a lien and said house would be "his". I freaked and left his property. I was afraid to tell my wife immediately so I looked on the net and downloaded about 80 pages of Indiana code regarding liens.I am sorry to say that other than a loophole of abandonment by contractor for a period of time, he was correct. I contracted an attorney and was able to get monies to finish the project after the attorney enlightened the builder on some aspects of the law he missed. If not for this loophole I would have been screwed. This was all due to me trying to get the builder to fix shoddy work. (I guess I hurt his feelings).I could not believe that the law would be so stacked against the homeowner. My bank was absolutely adament that they would not interfere with builders during a construction loan if builder showed progress on paper. If you can read your states codes, do so it is enlightnening reading. Keep your chin up as best you can. I am living in my home and the bad memories are being replaced with new and better ones as time goes by.
I don't question that Pbxhead's information is correct but I do think it misses an important point. I have never seen a building contract that didn't require a builder to perform with in expectable quality standards. Granted, the definition of quality can leave room for debate. My point is that if the conditions of the contract are not met or the quality of work is below industry standards you always have recourse.
wow paul...never dreamed you would'nt be in by now...this has got to be burning you up inside....man I cant stand thiefs!!!! and that's all this guy is, a THIEF!!!!...I definately wouldnt pay him his last draw, and if he wants to go to court and make a lien claim, tell him you would welcome the chance to get in front of a judge and tell your story! it seems you have plenty of documentation and pics to prove your point showing his incompitence.....but most likely, he will just write it off as a business expense.....he doesnt want to go to court with you and have you show these pics and how long this job has taken!....he wouldnt see another penney if it were my house!
keep your chin up, it can only get better from here!
>I definately wouldnt pay him his last draw, and if he wants to go to court and make a lien claim, tell him you would welcome the chance to get in front of a judge and tell your story!
This would be true if there were any measure of true justice in America, but as someone else pointed out things are skewed so much in favor of the builder that it aint funny. Some of these guys make there living in court.
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