Posted on: 17th Feb, 2008 07:18 pm
i have a construction note on a home that is 60% complete. i am in litigation with the builder because he abandoned the construction site and the house has significant repairs needed because of bad construction.
i cannot continue to pay the note nor does it make sense because it would cost more than what is available with the 40% of the construction loan balance. i own the land outright and it represents 35% of what i owe on the construction note.
i want to turn everything over to the bank including the land so that i can move on and then sue the builder for my losses.
would a deed in lieu of foreclosure work in this case?
i cannot continue to pay the note nor does it make sense because it would cost more than what is available with the 40% of the construction loan balance. i own the land outright and it represents 35% of what i owe on the construction note.
i want to turn everything over to the bank including the land so that i can move on and then sue the builder for my losses.
would a deed in lieu of foreclosure work in this case?
Hi Fredscott,
A dded-in-lieu may have worked if the house would have been in good condition because when the construction loan provider needs to sell the property to cover the amount which is unpaid. And he won't be able to sell if the property is not in good condition.
Is it possible for you to find another builder in a short time so that you can finish up with the construction fast? That's the only way I can think of.
A dded-in-lieu may have worked if the house would have been in good condition because when the construction loan provider needs to sell the property to cover the amount which is unpaid. And he won't be able to sell if the property is not in good condition.
Is it possible for you to find another builder in a short time so that you can finish up with the construction fast? That's the only way I can think of.
A deed-in-lieu is voluntary, so you should ask the bank. Don't you have a completion bond?
