Okay, hope this makes sense because I could really use some advice. In 2008 we contracted with a builder to build a custom home that was suppose to be finished Dec 2008. During the process we put in about 30,000. 5,000.00 down payment, some things we paid for along the way and then some for overages. Fast forward 2009. Our builder goes under. He has pulled 90% of the home loan and paid no one basically. He files bankruptcy. The bank that held our construction loan that was in the builder's name agrees to honor his contract and finish the house for us.
However their little handy man that the bank employees has never built a custom home. We have problem after problem. His electrician can't even install our dimmers and has to have step by step directions read to him over the phone by Levitrone who makes them! We sold our home to start this process and have rented a small house. The owner wants her house back-was only suppose to be until December when our hosue was finished.
By August 2009 we have harassed the bank and his handy man so much they are able to get a certificate of occupancy and let us move in so we aren't homeless. However the house isn't finished. In September we prepare to close. There are still drainage issues, electrical problems, our deck isn't screened in etc. New Washington assures us all will be fixed. 3 days before we are to close New Washington tells us the figures don't add up, that basically we need to come up with almost 9000.00 more. Initially we had been told everything we had put in the house money wise would go towards our down payment.
Didn't have a clue what this additional 9000.00 was for. They just kept saying the bank has to have 281,000.00. We were out of money and didn't have 9000.00. They told us if we didn't pay it we'd lose all the money we'd already put in and have to move that day. We have 2 young children and that would have been impossible. So they offer to make us a signature loan for the 9000.00.
Under the stress of having to move out that day we agree to it. They write us a cashier check payable to the new mortgage company. We are to give the mortgage company it at closing. Fast forward 2011. We have been battlilng getting the repairs fixed. The deck which was never screened in- the main beams supporting it have cracked. The brick around our arch way coming into the huse has cracked all the way. Our back yard is a cess pool from where they never connected the drainage pipes. Lights work sometimes, sometimes they don't. Roof leaks, gutter leaks it is a nightmare.
Our dream house has turned into a money pit. In May of 2011 we said enough and stopped paying our mortgage. We have tried to work with Wells Fargo, who now owns our mortgage to no avail. In October they filed suit for foreclosure. We responded and requested mediation and haven't heard anything back. We were referred to Hope for Home Owners out of Cinncinati Ohio, by the court and will meet with their person tonight.
Do we have a case? Ultimately what I would like is a reduction in principal to cover all the needed repairs. Is that even possible. In reading these boards I have learned their are defenses to use in fighting back. However we can't even find an attorney in Southern Indiana who handles forclosures. They all just want to file bankruptcy. Any advice would be greatly appreciated. Thank you, CC.