Search: "Construction loan"
Asked 12/19/2009 03:06 am CT (Duluth, MN)
On May 17th, 2001 we entered into a contract for a construction loan with a local bank. We were going to clear ground, build a full foundation, and move our upscale mobile home onto a 40 acre parcel that we had purchassed (and paid for) a couple of years before. We were told that at the end of the construction loan term (90 day\'s) that it would be turned into a 30 yr. mortgage and insurance and taxes would be escrowed into the monthly payment. When we went in to sign the paperwork after the construction was finished and the home was moved onto the property, we were told that they were unable to secure a mortgage, but that they would carry a note for the total amount owed. At that time we were told that they would only carry the \"note\" for a period of twenty years, and that it would not include insurance or taxes.
The \"truth in lending\" paperwork showed (at the time the construction loan was approved) that it would be a 30 year term and that they were \"able\" to service the loan.
We were caught between a rock and a hard place, and were forced to accept their \"new\" terms as we did not have $125,000.00 in cash to pay off the construction loan which was now due!
Although the payment\'s were quite a bit higher, we were able to make payments for several years, and every year they would continue the note. Lately, because of the lack of wok due to the economy we have fallen behind several times in our payment\'s, but have alsway\'s been able to catch up. 3 months ago, we received a letter in the mail after being only 27 day\'s late, that they would begin forclosure proceedings if we did not catch up our payments. We did, but are now living under the pressure that we will lose our home if we are late even a little bit late. They refuse to help us or even work with us.
Is any of this even legal?
Asked 02/14/2008 06:30 pm CT (Houston, TX)
We are trying to purchase a home that is a foreclosure maybe a REO- the construction was never completed -so there isn't a CO- a bit left to complete. The realator suggested a construction loan and at that time we were told that we could include a fence and a pool in the construction loan we have never thought there is $50k remaining inside of work to complete. Now that we have been told that the pool would be a seperate loan - how can we finance without a construction loan - or does anyone sell a construction loan for less than 50k, or can we put $50k into an account and lock it with only the lender able to draw to a contractor to complete the construction and the pool? We have good credit and rental properties free and clear but we do not want to offer collaterol - our debt to equity should be really good we don't have a lot of debt and we have equity in our current home of around 100k.? Please advise asap
Molly, depending on your down payment (ltv, or Loan to Value) many construction loans will fund not ...
[ Total Answers: 1 ]
Asked 04/13/2007 02:59 pm CT (Mount Sterling, KY)
My husband got a construction loan to buy a piece of land, co-signed by his grandfather. My name is NOT on the deed, but I was told to sign the Mortgage. What responsibilities and liabilities does this put on me if something happens to my mariage, or (God forbid) my husband dies?
Asked 03/19/2007 07:31 am CT (Ravenna, OH)
I have a loan I am going to purchase from one of our brokers. My question is, this is a construction perm loan. The original loan was carried by our broker. We are buying the refi of the construction loan. Is a ROR required on such a loan?
ROR do not pertain to closed notes or loans you buy whether at a discount or not from another indivi...
[ Total Answers: 1 ]
Asked 07/23/2006 04:07 pm CT (north stonington, CT)
What is the difference between a conventional fixed mortgage and a construction loan mortgage? We are discussing flipping a house and don't really know the best loan?
Convention financing is best if the property is currently livable. Construction/Rehab loans usually...
[ Total Answers: 2 ]