Getting the shaft

[Cindy]

I have a question for everyone on finances.
Our retailer quoted us a price on land, prepping the land, and the house to send to the bank for preapproval. They also promised that we wouldnt have to sell our house first. When they did this, they hadnt called the township for required ordinances or looked at the property we had in mind. They wanted us to have a purchase agreement for land and pay them 1400.00 as a down on the house, of which 400.00 was for doing all the preliminary work such as calling township, getting a drawing of our land, setting up the perk, getting bids together for the clearing etc...
Well, we were appoved at $160000 and all proceeded. Then they found out that due to ordinances, we had to have a 7/12 pitch and a garage and that required a different brand of house that was more expensive and the money for a garage and more clearing etc... It wound up being $208000.
Now, the bank says no unless we sell our house or give them a big down payment. We have lost our property now and are out $540 for contractor and the perk. Is this right? We are very heartbroken.
My friend says they should have found out from the township before getting a deposit from us so that we could be approved at the right rate. Is it illegal for them to get us approved at a rate and then jack up everything to get more? It sure didnt work because everybody wound up losing(except the contractor guy)

[Jerry Lenhard]

Your need an attorney, preferably a Real Estate attorney. Call your local
Attorney Referral Service. Could be some fraud here. Most decent
attorneys do not charge for an initial consultation & if your case is good,
may take it on contingency. Banks, Realtors, Contractors etc DO NOT
LIKE TO GET SUED.

[Randy Eaton]

Hello Cindy,

It's common sense to check to see if the property in question was zoned for a manufactured home. (HUD) Your sales center is completely responsible and should refund your deposit back. But I would not hold my breath and going to an attorney will cost you more then what it's worth. I would take them to small claims court if it were me. Hope this helps.

Randall Eaton

[rmurray]

Geez business is much different in the areas of the country...
First the developer of real estate person should have mentioned this unusual local requirement...Also you should always check zoning requirements when buying property..

It is hard to tell if the dealer has any fault...all depends on what you told him..I know we deal in 20 different counties and about 15 different cities on a regular basis...but they change all the time and it is almost impossible to keep up with them..If you told them a manufactured home could go there..and this requirement is not common in your area...and he is not in this area often...I doubt this is his fault...More the seller of the land...I am sure you told him you were putting a manufactured home on it..he should have know the local rules..

Now ..how could you be out 500??? Seems the first thing you listed (the call) would have brought this to light and spending would have stopped there...

Glad I am in the SE...just hard to believe a 7x12 roof and garage costs 40K...GEEZ..

[Cindy]

$540 was thepart of the $1400 that was the payment to the contractor for doing his research and for the perk itself. They told us it was non refundable in the beginning and we said ok thinking that we had a chance to actually do this. We are getting the rest back from these guys so if we took them to court it would only be for the 540 which we agreed to anyway. Whatever, I have learned a fortunes worth in the old "bait and switch" sales tactics.
Heres good news, I hope. The bank is going back to the underwriters to see about a loan for just our land. (if the owner of the land will still go with this).

Thanks to everyone for the replys.

Would it be ok for me to say who these ripoff artists are on this site?
Cindy