I am building a house my 6 mo. contract has expired is there some kind of penalty I can get so I can get done?

Question

Sorry so vague. The contract is a new home constrution contract in which the builder had six months for substantial compleation. I am financing the house myself. The house is not complete because the builder has taken on more contracts than they can handle. My house sat for six weeks with no work done on it. I might add that I have a Granddaugher in foster care that they won't let come live with me until I have moved. They feel it is to much to move with a two year old. My builder is also aware of this. Can't they be penalized for breach of contract? Maybe if we talk money they will get off their butts and get my house finished.

Answer 1

Please elaborate on what contract you are referring to.

Answer 2

It sounds like you're referring to your contract between you and your builder/contractor. For your protection, there should have been some sort of penalty clause already written into your contract...something that outlines a specific monetary penalty for each day the builder/contractor is late beyond the agreed upon completion date. If there was no such language in your contract, you may want to obtain guidance from your lender on this issue, or you may opt to discuss the matter with your attorney.

Answer 3

Do you mean with the bank where you have a building loan? Where you are living now? I'm not sure what you are asking, but if you mean that you are building a house and its not done yet, and are you going to get charged a penalty fee, then I don't know. You will need to call the bank and find out about the conversion of your building loan to a mortgage and see what might happen since you aren't done.

Answer 4

If the contract you are referring to is your construction loan, the remedy is to modify the loan and extend the maturity date. The lender may want to renegotiate the interest rate at this time and there may be a small fee to record the modification agreement.