Talked to local Countrywide rep about a construction loan. Builder will take the house to the “finishing” phase, then I will do the rest, such as trim work, cabinetry, wood flooring because I am good at it. Rep says he doesn’t know if possible, so we conference call Countrywide HQ and ask. HQ says “sure”, as long as I can get the cert. of occupancy.
I get the loan to build, we get the certificate, and we moved in. Builder is looking for the last draw, and I need to convert the construction loan to perm. Called it in, and was told I need a finished house in order to do the final appraisal and draw. Construction loan is going to mature in a month and I will incur large monthly penalties. I can’t finish the house by then, so I am stuck. They won’t convert my loan, and will penalize me for not converting it.
Local rep calls HQ to find out what’s going on, but no word yet. Help. Ideas? Thanks.
Replies
Was your modification of the standard construction loan put into writing. Or was it just some one on the phone that said sure no problem. You need to find out what you signed.
That is what the loan co. is going to honor, not what some person said over the phone.
By the way did you have YOUR lawyer, NOT the loan companys lawyers review the contract be fore you signed it and make sure the loan was structured the way you wanted it.
You need to go through your contract with Countrywide with a fine tooth comb. Better yet, call them and tell them to send you a copy of all the paperwork in your file.
The only reason I am suggesting this is because they are known to do some shady things such as forging signatures and such. As a matter of fact, there is a class action suit in the making for over charging on penalty fees, pre payment penalties, and forgery. A co worker of mine has initiated this very thing.
If it is determined that you signed for having a finished house and the penalties, next you need to determine if you are being overcharged anyway. There are legal limits of what lenders are allowed to charge, no matter what you signed.
Good luck.
Thanks, that was helpful.
why do you need to stay with Countrywide?
I would think that if your debt ratios are right you could get a permanent loan from any bank, and tell the construction lender to pound sand.
Bowz
This is what I'm working on. I got some lines out with other lenders. It's just that since the loan is still "open", the lenders I called had to do further investigating to see how to handle it.Hoping somebody here seen this type of thing before.
Hoping somebody here seen this type of thing before.
Seen it before? Ha Ha Ha. As I type, I am looking at some insulation, adjustable shelves as upper cabinets, scraps of wood for temporary door stops, etc.
We got the cert of occupancy, and the lender came out and looked and said, "yep, there is enough value here to cover the amount you are borrowing, so we can approve the permanent loan." We've re-fi'd since then also with no problem.
If you need some cash to finish the place, maybe the bank would be willing to escrow that amount, until you are done.
Bowz
Damn, see. Why can't I get that? And I am stuck with the "no one can do what we can" Countrywide.
Excellent point. I would go directly to a mortgage broker and get some sort of temporary financing (or permanent, if they can arrange it) and get rid of Countrywide. Given that rates are up somewhat I would think that mortgage brokers are eager for business. I could be wrong about that--maybe they're all swamped converting ARMs to fixed rates for people worried about continued hikes.
Anyway, get another loan.
Local rep calls HQ to find out what's going on, but no word yet. Help. Ideas? Thanks.
You are the weakest link. Thats why banks dont allow HOs to build their own houses.
Tim