Mishandling of certain documents and information that has caused great hardship, stress, and cost us time and money we were not prepared for.
We had already locked in our interest rate on the new house, had the loan through underwriting, and ready to close. Before we started the building process we were under the impression our lot was flat. When the builder (**** ********) went out to look he determined it to be a daylight or walkout. This happened back in APRIL. We were ok with this and thought nothing of it again, until now. We are supposed to close today and the builder/listing agent never got the updated addendum to us to sign, or our lender and now are requesting that extra $4,000 for a daylight basement be taken care of one of two ways.
1. We bring the extra $4,000 to closing and can close today.
2. We delay closing until next week, rework the loan, and possibly risk changes in our rate, fees, etc.
Our suggestion to have the builder pick up the extra cost due to the listing agent dropping the ball, is not going to work for them. Of course, this would not be a big deal if they would have caught it before the day of closing. However, we have to be out of our rental townhome this weekend so will not be able to close next week.
This has caused my family, our real estate agent, and our lender a great deal of stress. We have lost valuable time dealing with this issue and will have to use funds that were already allocated elsewhere due to this mishap. Not once has either the listing agent ***** ******* of Iowa Realty) or the builder taken blame for this.
We are seeking a refund of $4,000 (extra amount due at closing) due to the damages caused by the parties involved. This includes Destiny Homes (**** ********) and Iowa Realty Agent **** ******** This has caused delay in the closing of our new home, stress for my family, and put us in a position we should have never been in.
Contact Name and Title: **** L ********
Contact Phone: XXX-XXX-XXXX
Contact Email: *********@destinyhomesusa.com
Case # XXXXXXXX
X-XX-XX- Lot was inspected to view garage location and found lot was not flat. I called **** and let him know of the additional fee.
X-XX-XX- **** followed up with an email to **** see attached. See the agreement to the addition.
7-8-14- Final Walk at home. Everything was complete except Sod. Buyer spoke to lender and told them to prepare to get the home closed. Most Lenders start 30 days out to go over all the paperwork and have an appraisal completed and just have to drive by at the last minute for verification.
7-9-14- Sod and 100% of home completed per inspector
X-XX-XX Occupancy Permit supplied via the city of Madrid on
X-XX-XX **** bank contacted West Bank for Payoff the day before intended closing date. Normally I get this request via West Bank at least a week to two weeks prior to closing
X-XX-XX Contacted by agent that final inspection by bank was ordered and happening today
X-XX-XX Final inspection by his bank
****'s Bank (not our preferred lender) did not have updated numbers when it came out of underwriting. We had no contact with the bank. Normally numbers are confirmed by the bank a couple weeks before closing and goes over all documents. I am not sure how the bank received any of the numbers or information they had. Did the buyer send the numbers to them and if so why did he not send the email with the $4,000 cost in it to the bank as well.
Three days before closing we receive HUDs from the banks and still have the chance to correct anything wrong at that point prior to closing. I received the HUD on this the day of closing.
The buyer is requesting to not pay for something they knew they were getting and they were notified of the price. This item did not slow the closing but it could have. As mentioned it was already 6 days late prior to the discussion of it.
If any clarification is needed or additional documents please let me know and I can answer anything additional.
From: **** **** mailto:*********@gmail.com
Sent: Tuesday, April 15, XXXX X:XX AM
To: **** **********
Cc: **** ******** **** ********; <****************@wellsfargo.com>; ***********@wellsfargo.com
Subject: Re: *** ***** *****
No need to apologize. We were told it would be a flat lot by the listing agent in Madrid. No worries though. We are good with whatever it may be.
Thanks for the heads up though.
Sent from my iPhone
On Apr 15, 2014, at 9:19 AM, ****** ************ <***********@destinyhomesusa.com> wrote:
**** was just up that direction to verify garage right on your lot before we go to permit.
He noticed the houses on each side are on a walkout lot. I know your lot specified flat, but he said its for sure a daylight and possibly a walkout. This is pretty good news considering that a daylight or walkout lot is usually the first ones to go and often cost more. The bad news is that for us to actually construct the home on one of these lots there are some extra steps we need to take as well as some extra charges. We will not know 100% whether its daylight or walkout until we dig for sure, but want to run this by you before we start. It would run $4000 more for the daylight, which includes daylight windows, more siding and a 10x10 deck. If its walkout, it will be $6000 more and will include everything the daylight does, and also a 10x10 patio, and a slider door downstairs with even more siding.
I apologize for you just finding this out, but the lot was labeled as flat, and this is incorrect. We cannot dig it as flat, or there will be drainage issues.
Let me know how you want us to proceed
**** *** *******
(The consumer indicated he/she DID NOT accept the response from the business.)
There was never a call made by **** to us (buyers). We would be more than happy verify phone records if need be. I have not once talked with **** on the phone. We received an email from **** that stated it was either going to be a walkout or daylight lot and he listed the price difference for each one. Not ONE time did ****, ***** or **** tell us EXACTLY what we were going to be getting as far as the walkout or daylight. That is something we did not know until we were able to see the foundation poured.
We did not provide our lender with any information regarding pricing. That is not our job, and working in the banking industry I have never, nor will I ever, see that happen. For that to even be implied is ridiculous in itself. This should have been updated by Destiny Homes and the listing agent. We should have received a new addendum to sign with the updated pricing. This is something our lender, nor us, were ever provided with. Once again, it is not the buyers responsiblity to remain on top of pricing changes and make sure the builder is doing their job to get new documents to the buyer to sign. The lack of due diligence involved in this process is amazing. Destiny Homes, **** ********, and **** ******* have not ever ONCE taken responsiblity for something that was their fault. Had this been addressed **** before (which it should have) we would have not been FORCED into this position. The extra $4,000 was already allocated towards other items needed for the home.
This whole situation could have easily been avoided if the builder and listing agent were doing their jobs. On top of that, for them to not take blame for it is astounding. As buyers, we cannot believe that Destiny Homes would not help to offset the extra cost in some way at all. There are plenty of things that could have been done to keep a happy customer. Destiny Homes would rather lose a customer, and many other potential customers, because they are trying to place blame on the customer instead of themselves. The whole situation has been handled in poor taste by **** and *****
This day in age it EASY to get the word out about businesses and certain individuals.
Final Business Response
Builders do not communicate with buyers lenders and I have not discussed any buyers information with the lender of the buyer.
Closings do however happen where items are missing for what ever reason and the lender gets it from a buyer or realtor and gets it re-done in a day to have a proper HUD. HUD's are reviewable up to three days before close date to repair anything that is not correct. That is normal in the process. That communication comes through realtors.
Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Once again, Destiny Homes is failing to admit fault regarding this issue. **** ******* represents Destiny Homes, does he not? So are you placing the blame on him regarding the HUD? Why was the addendum not updated correctly from the very beginning when both the builder and listing agent knew of the changes?
I will state again...we never were informed which basement finish we were getting. Was it a walkout? Was it a daylight? We were never told and had to see that first hand. I suppose we were supposed to bring that to your attention and make sure the addendum was updated, correct? If that's the case, where's our cut of the sale? We haven't gotten paid yet for doing your realtors job.
****, you lied to the BBB stating that you made a phone call as well. That NEVER happened. Why are you making false claims? Who dropped the ball regarding our issue? Why were we as buyers never informed what exactly we were getting? Why was the addendum not updated and SIGNED by the buyers prior to closing like it should have been? I could go on and on. You have failed to answer any of these questions and are backing yourself into a wall.
Destiny Homes is placing blame on everyone else but themselves. This should have NEVER happened and we would still have an extra $4,000 in our pockets.
I can assure you this wont just go away. You haven't heard the last from us.