Construction to permanent loan

[Joel Fraser]

My husband and I were introduced to a builder by our real estate agent. :eek: We were very impressed by the builder's work and agreed to use him. He advised us that he preferred to use BB&T as they already knew him there and said we could apply for a construction to perm loan. Everything went smoothly with the application process and we were approved within a couple of days. The loan officer encouraged us to allow the checks to be signed by the builder only since we lived in a different city and this would speed the process of checks clearing. We were fine with this. Soon after closing on the construction loan,which at that time,the builder was asking for an advance of $10,000 to get started(strange?). There were several delays and after having several conflicts with the builder, I called the loan administrator and asked that the builder not be paid beyond the work that had already been completed(which she now says I never asked). I was told at that time that he was the builider that I chose and that they would have to pay him. I was told to refer to the contract which indicated it was at the banks discretion to stop paying builder. The builder asked that we start over and try to work together. A couple of weeks pass and after many dollars requested from us for overages and mistakes were made by the builder, I called the Regional Manager of loan administration,who basically told me the same thing that his subordinate had told me, that we chose the builder and they have to pay him. Long story short, the builder was paid in full before the house was complete, there are many things not completed, and per an inspection that I obtained the roof will need to be replaced within 4 years. There was water leaking behind the wall in one bedroom, tray ceiling keeps *****ing in master bedroom, no insulation in some areas in attic, no ventilation in attic, driveway *****ing. Mind you we have not moved in yet. We again spoke the Regional Manager and he agreed to meet with everyone(builder, foreman,loan officer,loan administrator, buyer) at the house to discuss the issues, including a granite countertop in master bath that had been ruined because the holes were put in the wrong place. The regional manager agreed that there were some very legitimate concerns and agreed on behalf of BB&T that the bank would pay for the granite countertop being replaced and assuring that builder would take care of other issues. The only thing taken care of was the granite countertop. Plumbing issues now exist(very slow draining). Instead of moving plumbing to right place, it was rerouted sideways?. Anyway,builder stopped working on house,said that he is finished. He actually went to Lowes and had a mirror cut in half and glued it to the wall in the master bathroom, one mirror fell which exposed a large hole in the wall. The house did not pass inspection and there are two liens on the house. BB&T can't understand why we won't move into the house(we still have not signed modification to convert to permanent loan. Oh, one more thing, the house was built partially on the wrong lot. The bank is now giving us the option to provide them with a deed in lieu of foreclosure. Is the fair? Didn't the bank have a fudiciary duty to us? The loan officer and loan administrator are friends with the builder. Has some type of mortgage fraud been committed?Please advise. Sorry so long, and believe me this is not all.