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Old 09-16-2008, 04:29 PM
 
51 posts, read 122,824 times
Reputation: 34

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We found out on Sunday that the builder who is building our home (Woodside Homes) has filed for Chapter 11 Bankruptcy protection. We were assured that this would not affect the house being finished and sold to us. So today I decided to call the sales office and get an update. I was informed that the house was initially 2 weeks ahead of schedule but since the BK issue the house will now finish on time instead of early .But since the house won’t close before September 30th, Wells Fargo, whom we got our home loan through, will no longer be handling our loan. The sales rep told me a broker will be calling me soon. He said that the loan was being handed over to this guy and it would be smooth sailing. I am so confused and do not know what to think about all of this. Shouldn’t SOMEONE have called and told us this was happening??? Now I’m concerned that things are going to fall apart.
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Old 09-16-2008, 05:54 PM
 
Location: Richardson, TX
10,145 posts, read 16,731,297 times
Reputation: 24734
Get your own banker/broker. You don't have to use whoever they're sending it to, and the builder has no impetus to work in your best interests on this referral.
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Old 09-16-2008, 06:34 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
Follow the advice of Debsi. Ask some of your friends for a referral of a good broker or banker or ask at your church.
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Old 09-17-2008, 01:50 PM
 
4,304 posts, read 11,129,515 times
Reputation: 2456
Quote:
Originally Posted by mantismom View Post
We found out on Sunday that the builder who is building our home (Woodside Homes) has filed for Chapter 11 Bankruptcy protection. We were assured that this would not affect the house being finished and sold to us. So today I decided to call the sales office and get an update. I was informed that the house was initially 2 weeks ahead of schedule but since the BK issue the house will now finish on time instead of early .But since the house won’t close before September 30th, Wells Fargo, whom we got our home loan through, will no longer be handling our loan. The sales rep told me a broker will be calling me soon. He said that the loan was being handed over to this guy and it would be smooth sailing. I am so confused and do not know what to think about all of this. Shouldn’t SOMEONE have called and told us this was happening??? Now I’m concerned that things are going to fall apart.

What type loan to you have. Is it a construction loan. Your main worries is liens being filed against the property. Check the county the house is being built in and see if you can access the public records. If you can't contact your title company and have them do a title update. Some title companies charge of this and some don't. Ask them up front. What you don't want to happen is to start getting lien notices after you have closed on the home. If it is not a construction loan I would strongly suggest you bypass who they are using and get a lender on your own. Don't believe anything the builder tells you. Dealing with issues is what I do for a living.
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Old 09-21-2008, 06:56 AM
 
Location: Midwest transplant
1,984 posts, read 4,789,113 times
Reputation: 1508
Get your own lender, not one in the "best interests" of the seller. Also, get a real estate attorney to hold everything in escrow (to the builder) until you are satisfied that the house is finished according to contract. I was in your shoes 20 years ago (builder went bankrupt @ 2 weeks before closing) and thankfully we still closed on time, but our "to-do" list was 30 major items of unfinished business. Our attorney would not give up a dime to the realtor who was representing the builder, nor would he allow any portion of the mortgage to go to the builder. Turns out the builder owed everyone in town a piece of change or more, and the leins on our taking ownership were to pay off all the sub contractors. The builder never saw a dime of my mortgage and the realtors had to split the commission that ours was to receive. Not a pretty closing.

The other option if possible is to walk...we considered it until our realtor found us an attorney we felt would represent our best interests. We were moving from out of state, so it was stressful.
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Old 09-27-2008, 08:58 PM
 
2 posts, read 20,349 times
Reputation: 12
I have owned 2 Woodside homes the first was a pleasent experience but the 2nd has been nothing but trouble my master bath was torn apart for 3 months, and I had to keep calling to try and get it put back together, our concrete in our driveway approach is sinking and they refuse to repair it in a timely manner. I know I would never buy another home from Woodside I believe them to be decietful and dishonest. If there is a way to get out of your contract I would do it. i know people who have threatened to walk away and thd woodside actually lowered the price of there home
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Old 09-28-2008, 01:59 PM
 
Location: MID ATLANTIC
7,602 posts, read 17,634,581 times
Reputation: 8084
Builder and bankruptcy in the same sentence. Alarm one.

Builder's loan company can't do loan. Alarm two.

September 30??? Were you by any chance getting a DAP thru the builder? (possible explanation for that date)

The original post is almost two weeks old. I would hope by the OP has their answers. Hopefully, it won't be with the loss of any earnest money or filing in court to attempt to settle any outstanding debts with subcontractors to move forward. If in a market with declining values, at what point do you say enough? Do you spend another 30K to save the money on deposit? Even if values appear to continue to decline? When do you say stop?
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