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He has started the other houses but just barely. I think just land clearing. We're supposed to be next. I sent him an email stating we want a meeting with him on Monday. He did respond and said he understands our concerns and is happy to talk to us. Hopefully we get some resolution. This is just so disappointing as it was a huge commitment when we decided to do this and we were so excited. Thanks to everyone for your responses.
You closed on a construction loan, but haven't started building? That doesn't make sense. Construction loans fund the build and are rolled over into a mortgage once the build is complete. That's how it works in the states I've built houses in.
Once we closed, he was supposed to take his first draw. He hasn't taken a first draw so no money lost there. We didn't give the builder a deposit, that went to the bank. We're just waiting on him to take the first draw and start.
The fact that no money has yet flowed to the builder is a good thing for you. Check with your lawyer about stopping the financial end of the transaction; perhaps with an injunction, while you work out the specific details of project completion. I would not move ahead from this point unless I had a clear commitment on paper with delay penalties in place.
As you point-out, you have a 12-month commitment, with 5-months already gone on a 10-month project. That should immediately tell you that the completion date has already been extended by at least 3-months ... and probably more. The inactivity and avoidance of the builder before construction even starts, is a huge red flag. This could readily become a serious (and costly) problem for you, if the builder starts drawing down construction funds ... and then delays the project and avoids contact.
OP. Keep your lender abreast of everything that transpires. Construction loans are typically for a 12 month period, some provide for extensions. Typically a maximum of 60 additional days.
Trust me when I tell you this - If you are having issues and communication problems with your builder BEFORE he has taken a dime of your money, that things ONLY get worse from here.
The builder is always most responsive when trying to get paid...I would run from this builder and find a new one. I understand you get committed after so much time, but a builder who is hard to reach before the hard part starts will only be harder to reach once the hard part is underway.
Building takes a lot of work, and a lot of communication. I would petrified if I was spending $800K on a 3600sqft house and was not getting lots of attention...you are in the high end $220/ft range...most of these builders cater to discerning customers, not ignore them.
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