closings

[sallie biles]

My daughter and son-in-law just purchased a mobile home. They had the land to put it on. In July they signed their contract and went to the title company.They made their closing then. The contractors did not do they job correctly, therefore they had to come back and finish. Now, they are telling my daughter that she has to sign a second closing. In this closing she will have to pay $200 more per month. Also the loan company is trying to charge her $4,000 interest for the months in which the contractors hadn't put a driveway in, nor was the home ready. They purchased the house in July with the promise that they could move in by the end of August. The house was not place on the property until November 20. They are trying to charge them for something that they didn't have. Also, I had never heard of having to sign a second closing and all this extra cost. Who do you contact when a business is overbanking? Should they hire an attorney? Please reply soon. They are trying to pressure my daughter to sign this second closing by Monday, February 24,2003. They told her that if she didn't sign this second closing, they would take back the house as well as their land.

[Threnody]

They need to see a lawyer. PRONTO.

[rmurray]

Your daughter signed a construction loan...She has already closed on her home...NOW..it is time to close on permanent finance...Her issues with the dealer...have nothing to do with this lender....Interest was earned by this lender as money was paid out to contractors..$ 2000 in interest is about the amount due for this loan....Actually if she moved in in Nov...3 full months of interest would be nearly this high...so only a small part of the interest is for funds advanced prior to the Nov date you mentioned...
Your daughters only alternative is to pay off this original note....AS IT CALLED FOR WHEN SHE SIGNED...She can do this by paying cash or refinancing the loan with another lender...This is a common form of construction finance and would have been explained by the original closing attorney.....Sorry...she needs to move forward ASAP..