B
bhowell
Guest
In June 1999 I entered into a contract for deed to purchase a house from the builder. The contract required me to pay the builder $6,000 down and to make monthly payments of $1,350, interest only to the builder over the next 12 months. At the end of the 12 months I was to secure a mortgage. In March 2000, I lost my job. I found employment again in April, however the pay rate was $8,000/yr less. I immediately notified the builder that I would not be able to fulfill the contract (wouldn't be able to get a mortgage). The builder agreed to sell the house. In July 2000 the builder told me the payment had increased to $1,455 per month as the bank holding the construction note had increased the interest rate. By August 2000 I had depleted all my reserve cash and have been able to make only half payments each month. In August I notified the builder that I would not be able to make full payments and offered to move out. He requested that I stay there as half the payment was better than none. Today the builder called and said the bank is going start foreclose proceedings on the construction note and take possession of the house. My questions are 1) Does the builder have any recourse against me for not fulfilling the contract for deed? 2) Am I in anyway liable for the difference between what the bank sells the foreclosed property and what the builder owes on the construction note? 3) How much time do I have before the bank takes possession of the home? The property is located in Missouri.