I know I've shared this story last year, but it seems fitting...
We were hired to build a home for someone. They refinanced the vacant lot with a new mortgage that encompassed the lot loan, construction loan and an interest reserve so they didn't have to make payments for the first 6 months.
We completed construction, obtained the CO and submitted for our final 15% draw on the construction. The lender informed that the interest reserve ran out and the owner made no payments of their own. This put the mortgage in default, which forced the lender to hold our final payment.
We wound up paying the owner's mortgage current and paying for their homeowners insurance policy to bring the mortgage out of default. We received our final payment. The lender bundled and sold the dead beat mortgage which immediately went back into default.
We were hired to build a home for someone. They refinanced the vacant lot with a new mortgage that encompassed the lot loan, construction loan and an interest reserve so they didn't have to make payments for the first 6 months.
We completed construction, obtained the CO and submitted for our final 15% draw on the construction. The lender informed that the interest reserve ran out and the owner made no payments of their own. This put the mortgage in default, which forced the lender to hold our final payment.
We wound up paying the owner's mortgage current and paying for their homeowners insurance policy to bring the mortgage out of default. We received our final payment. The lender bundled and sold the dead beat mortgage which immediately went back into default.
