Need Help ASAP on Construction Loan NOD

[hockeymom7]

We are totally frazzled and no one seems to be able to offer any assistance. We took out a construction loan in Jan 2007 and undertook construction of our family dream home. Our youngest is very challenged to much of the home is designed especially for his needs. Well the contractor was an idiot and the entire construction took 24 months instead of the anticipated 14. During the course of construction the mortgage market crumbled and wife lost her job. So now we have a fabulous home that we haven't been able to live in because we don't have permanent financing; can't get permanent financing due to change in qualification requirements - lack of stated income loans - and the construction lender will not grant any further extensions and has filed a NOD. The property is worth way more than the amount owed on the construction loan. Everyone says our only option is to sell before the bank takes it back and sells it themselves. If that happens we also lose $200k they made us put up as additional collateral for one of the extensions of the construction loan [which they only granted for three months] Do we have any other options or must we truly lose our investment and our family's dream home built for our handicapped child?????? Can anyone help????

[flagirl4444]

You can either sell or have the bank foreclose, leaving you with less profit. Either way you lose the house, so why not just sell it yourself and use the equity to start over and build another house that will accommodate your son? I realize this is your dream house, but no home is worth financial ruin.

[faith]

Originally Posted by hockeymom7

We are totally frazzled and no one seems to be able to offer any assistance. We took out a construction loan in Jan 2007 and undertook construction of our family dream home. Our youngest is very challenged to much of the home is designed especially for his needs. Well the contractor was an idiot and the entire construction took 24 months instead of the anticipated 14. During the course of construction the mortgage market crumbled and wife lost her job. So now we have a fabulous home that we haven't been able to live in because we don't have permanent financing; can't get permanent financing due to change in qualification requirements - lack of stated income loans - and the construction lender will not grant any further extensions and has filed a NOD. The property is worth way more than the amount owed on the construction loan. Everyone says our only option is to sell before the bank takes it back and sells it themselves. If that happens we also lose $200k they made us put up as additional collateral for one of the extensions of the construction loan [which they only granted for three months] Do we have any other options or must we truly lose our investment and our family's dream home built for our handicapped child?????? Can anyone help????

Hello and welcome to this forum,
I am sorry to hear about your situation including your child's situation. Hope everything will be fine with you and family.

You are not alone, all of us homeowners lose a lot of money due to the decline of the value of homes, some lose their jobs, their homes due to foreclosure and Short Sale. Maybe you should ask your lender to see if they can modify the loan? I think you have a hardship which is due to loss of income and the situation about your child.

In a situation like this, before you do anything else you should talk to a Real Estate Lawyer. Ask for a free consultation or buy an hour or two hours of his time to discuss your situation. Check his license to State BAR Association online to see if he is license to practice law. There is a thread in this forum called ask the attorneys, why don't you click on that section and see what they say. Here's the link for it: http://www.loansafe.org/forum/

Here's the link also about Short Sale to give you an idea how to do it:
http://www.loansafe.org/forum/short-sale-outpost/

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My thoughts and prayers are with you and family. Take care and God be with you

[so-cal-gal]

Originally Posted by hockeymom7

We are totally frazzled and no one seems to be able to offer any assistance. We took out a construction loan in Jan 2007 and undertook construction of our family dream home. Our youngest is very challenged to much of the home is designed especially for his needs. Well the contractor was an idiot and the entire construction took 24 months instead of the anticipated 14. During the course of construction the mortgage market crumbled and wife lost her job. So now we have a fabulous home that we haven't been able to live in because we don't have permanent financing; can't get permanent financing due to change in qualification requirements - lack of stated income loans - and the construction lender will not grant any further extensions and has filed a NOD. The property is worth way more than the amount owed on the construction loan. Everyone says our only option is to sell before the bank takes it back and sells it themselves. If that happens we also lose $200k they made us put up as additional collateral for one of the extensions of the construction loan [which they only granted for three months] Do we have any other options or must we truly lose our investment and our family's dream home built for our handicapped child?????? Can anyone help????

Hey are they still doing that tv series where they go in and work on homes for families with a serious problem and family members with challenges?

IF they are still filming that show, I wonder if they would take on a case of "MORTGAGE NIGHTMARE" and get this 'paperwork construction'/lending issue fixed?

I wonder if that program has ever delved into the current nightmare of mortgages for these families?