ComplaintsforK. Hovnanian Homes - Houston

• Initial Complaint

  08/31/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  We began a contract with K Hovinian on an inventory home. We were pressured into signing the contract and were told repeatedly that our earnest money would be refunded if the financing did not go through with the purchase of the home. K Hovinian was the lender we used in order to get a $5000 credit towards the purchase of the home. The financial officer, burke did not deny our application until a week before closing. The only reason I know of this is because I received a letter from the company this week. Our closing date was set for August 25. K Hovinian pressuring us to sign a contract and repeatedly stating our earnest money would be returned--- now the company is not returning the earnest money. This matter needs to be resolved. The company did a poor job of the entire process. I also have documentation to support this.

  

  Business response

  09/06/2023

  Business and Consumer entered into a contract on or about April 25, 2023, for the purchase of a home. Consumer had their loan approved, with a few contingencies, for the purchase of the home on June 6, 2023. Per the contract, Consumer must remain qualified for the loan and must comply with any terms and conditions of the loan. A material term of the contract allows Business to retain the earnest money (i.e., the earnest money becomes non-refundable) once the Consumer receives loan approval. Consumer failed to comply with the terms and conditions of the loan, hence the loan was denied on August 11, 2023, and the contract was breached. Therefore, Business kept the earnest money deposit. 

  Customer response

  11/13/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [Provide details of why you are not satisfied with this resolution.]
  
  Regards,
  
  
   We began a contract with K Hovinian on an inventory home. We were pressured into signing the contract and were told repeatedly that our earnest money would be refunded if the financing did not go through with the purchase of the home. K Hovinian was the lender we used in order to get a $5000 credit towards the purchase of the home. The financial officer, burke did not deny our application until a week before closing. The only reason I know of this is because I received a letter from the company this week. Our closing date was set for August 25. K Hovinian pressuring us to sign a contract and repeatedly stating our earnest money would be returned--- now the company is not returning the earnest money.This matter needs to be resolved. The company did apoor job of the entire process. I also have documentation to support this. As you can see in the TEXT MESSAGES attached, DATED before closing that we STILL HAD NO ANSWER FROM K.HOVINIAN MORTGAGE COMPANY about our loan approval. This sells representative knowingly was DISHONEST and pressured us into the sale of the home. The earnest money is to be returned to us AS NOTHING CHANGED from the time our loan was "approved" to our loan denial--which we also have these letters and date stamps on the letters. We were pressured into signing the contract and were told repeatedly that our earnest money would be refunded if the financing did not go through with the purchase of the home. Return the earnest money.
  

  

  Business response

  11/21/2023

  The provided text messages do not support Consumers’ claim. However, Business will expand to our response on 9/6/23 and state several items did in fact change from the Consumers’ loan approval to the denial of the loan. The Consumers’ loan approval was contingent on the Consumers’ selling their home and a gift of funds from their mom who was selling her home as well. Per the contract, Consumers must remain qualified for the loan and must comply with any terms and conditions of the loan.  Consumers failed to comply with the terms and conditions of the loan (their home was not sold, and neither was their mom’s home so no gift of funds from their mom was available). A material term of the contract allows Business to retain the earnest money (i.e., the earnest money becomes non-refundable) once the Consumers receive loan approval. Since Consumers failed to comply with the terms and conditions of the loan (which happened after the loan approval), the loan was denied on August 11, 2023, and the contract was breached. Therefore, per the contract the Business kept the earnest money deposit.  In conclusion, the Consumers executed the contract and therefore knew they had to maintain the loan and they did not perform since they did not sell their home nor receive the gift of funds from their mom. 

  Customer response

  11/22/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [We were never provided ANY documentation or requested documents on our loan approval in regards to our house selling. It is no where in any contract or document. The loan officer (K HOVINIAN) did not disclose any of this information. We had not sold our house and we were approved with NO CONTINGENCIES. Refund our money. It is the correct thing to do. We did not breach or terminate our contract, the company did that without even notification! We were told on numerous occasions that we would get our deposit back. K HOVINIAN approved us, just to keep our money. 

  Regards,
  
  
   

  
  

  

  Business response

  12/15/2023

  The Business does not have anything to add to the Business’s last response on 9/6/23 and 11/21/23. However, the Business did offer to the Consumers the opportunity to apply the funds to a future purchase of a home, within a year from 8/15/23.

  Customer response

  12/29/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  

  Provide our money back to us. We only signed a contract and provided earnest money because we were told MULTIPLE times the money would be returned to us on the contingency of our house selling. The house we signed was being built regardless as an inventory home. Provide our earnest money back as k HOVINIAN repeatedly stated that they would. It's $3,000. Seriously. Just return our money! 

  
  Regards,
  
  
   

  
  

  

  Business response

  01/18/2024

  Business will be contacting Consumer to return the earnest money in the sum of $3,000.

  Customer response

  01/30/2024

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution would be satisfactory to me.  
  
  
  
   
  

• Initial Complaint

  12/09/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I bought a home from Khov and moved in right before lockdown. It seemed somewhat quiet, but now that we are only, the house is very loud. The traffic is too loud and very disturbing. I noted that my neighbors did not seem to mind the noise too much until I went to both houses on either side of me and noted that their houses were considerably quieter than mine. I let KHov know this and they sent 2 people to my place who said that 2 of the windows were not properly closed, this is why it is loud. The "open' windows where not visible to the eye, they were barely open. They also said that the house passed inspection for the City of Houston and they would not have been able to sell if there was a problem with the house. This still does not explain why it is considerably, quieter in my neighbors home. Both neighbors on either side of me have quieter homes. I would like to enjoy this home in peace. I know you cannot block out all noise as that is unreasonable, but something is odd that my home gets more traffic noise than my neigbors and we are all on the same street facing the same traffic. I think they need to figure out what this is or pay for my window replacement. I will contact professionals to soundproof the windows or doors of the noisest rooms which is practically all of them. I still do not understand the mystery of why it is quieter at both neighbors on either side of me. KHov's people did not go into my neighbors homes to note the sound difference. I suggested that and they declined.

  

  Business response

  12/16/2022

  The property, **** ******* **** ***, Houston, Texas 77043 (“Property”) passed all inspections which included insulation. The Consumer’s complaint about the Property being noisy is subjective

• Initial Complaint

  11/29/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  One of our vent pipes on our roof was installed incorrectly without a collar which led to water draining down the pipe and rotting our roof decking. K. Hovnanian sent out a roofer to look at the issue and damage. They came up with every excuse to avoid the claim and ended up blaming the nails that held the vent on and said it's home owner maintenance when clearly it was installed incorrectly. I've attached a picture of what I'm referring to, one shows my neighbors and the other is mine clearly showing the missing collar.

  Customer response

  12/01/2022

  Better Business Bureau:
  
  This letter is to inform you that K. Hovnanian Homes - Houston has carried out to my satisfaction the resolution it proposed for my complaint, filed on 11/29/2022 and assigned ID ********.
  
  Regards,
  
  

• Initial Complaint

  11/07/2022

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  I entered into a contract for new home build in Waterstone on the Lake in Conroe, Texas the beginning of Feb 2022 with a closing date of mid-August. Elizabeth the sale's agent contacted me early August pushing to mid-Sept due to a back order on the transformer. Then I was told it was pushed again but they had no idea when I could close. I have been living in a RV with my kids waiting on this house to be completed. My rate lock keeps expiring and rates continue to go up. Once again, my rate lock will expire 11/25 and they have no idea when my house will be finished or an estimate on closing date. As of the end of this month we have nowhere to live. Everywhere wants a year contract and my lender doesn't think I will even qualify for the loan with interest rates climbing so quickly and the ongoing delay on the house leaving me stressed and frustrated. This is no way to live raising your kids. Today, I finally had enough and cancelled to find a new place for us to live. The agent informed me that although they still have not finished the house and have no idea when I could close, they would not be refunding me my $11,150 of deposit which I put down, which was $6150 more than they required. Not to mention I was quoted one price on the home and required to do additional upgrades to the home because the builder had already had an upgrade package on the house that forced you into more upgrades saying there was no standard for the upgraded package they had on the house. It took me over 30 days to get to the design center to even find this out which was past the cancellation period. From day one I have been lied too and they refuse to refund my money so I can find a place for my kids and I to live.

  

  Business response

  11/16/2022

  Business is considering Consumer's request. 

  

  Business response

  11/22/2022

  The Business is working with the Consumer to refund her money.

  Customer response

  12/20/2022

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution would be satisfactory to me.  
  
  
  
   
  

• Initial Complaint

  08/25/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  May I Mention that we purchased in 2020 the model home that was built in 2014 and we have been having issues with the second floor air flow in the two bedrooms. The ac is making strange noises and they came numerous times to caulk some holes and paint the walls. That we had to hire a 3rd party ac company to find out the vent were not probably installed in the attic and we didn’t get the proper air flow throughout the house. Now we have the mildew stuffy and musty smell in the two upstairs bedrooms & environmental growth looks to be black mold , we can’t live upstairs because of it and they won’t fix the issue.

  

  Business response

  08/26/2022

  The Company has received the BBB Complaint and will contact the Consumer directly and attempt to resolve the Consumer's concerns to their satisfaction.

  Customer response

  09/13/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [Provide details of why you are not satisfied with this resolution.]
  
  Regards,

  There’s environmental growth/mold and Khovanian doesn’t return my calls
  
  
   

  
  

  

  Business response

  09/13/2022

  
  The Company had received the Consumer's warranty requests prior to the Consumer's complaint to the BBB.  We talked with the homeowner and scheduled an inspection at the home by our construction personnel along with HVAC professionals.  The Consumer then cancelled the scheduled inspection and filed this BBB claim.  At this time, the Company has again scheduled an inspection for Monday, September 19, 2022 at 10:00 a.m.  
  

  
  

  

  Business response

  09/13/2022

  The Company has scheduled an inspection of the Consumer's home for September 19, 2022 in order to investigate the concerns and decide on a remedy.

• Initial Complaint

  08/11/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  After several unsuccessful attempts to communicate and get my floors right, khov developer refuses to make good on damage done to my base boards and return my home to me in an acceptable manner. They have bad work along the door frames, scrapes, cuts and bulging caulking are not acceptable. The remedy for ruining our new home is to just paint over it. My desire is that they remove the disgusting caulking and reset it correctly in the groove with a tightly like my home was given to me. The mere fact that manager was unwilling to acknowledge shoddy work is frustrating and will def let prospect purchaser to consider the after home purchase experience. This has been a 5 month nightmare. These were damages caused by contractors.

  

  Business response

  08/17/2022

  The Company has contacted the Consumer and scheduled repairs for next week to address the Consumer's concerns.

  Customer response

  08/17/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  

  the solution presented is to paint over broken wood frames and paint over caulking that is entered wrong. The warranty work should leave my home the way it was prior to working. Contractors ruin door frames, edges, and incorrectly entered caulking. I would like a commitment to replace what was damaged.  
  
  Regards,

  
  
  
   

  
  

  

  Business response

  08/17/2022

  The Consumer's response rejects the repairs before the Company has arrived to address his concerns.  The Company has scheduled additional work and would like an opportunity to resolve the matter as scheduled with the Consumer.

  Customer response

  08/17/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  During site survey, management representing khov stated clearly that he will only authorize painting over areas but not removal of caulking and damage door frames. He offered to paint over. The discussion is available on my ring security camera if needed. Again, I called khov corp offices and request a phone call and have yet to receive one. Im not asking for anything else but a commitment to return my home to me in the same condition prior to coming to do warranty work. 
  
  Regards,
  
  
   
  

  

  Business response

  09/22/2022

  The Company met with the Consumer and made many repairs requested. The Company’s Area Manager spoke with the Consumers at the end of the repairs. It is the Company’s understanding the claim was resolved on August 31, 2022.

  Customer response

  09/29/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [my baseboards were damaged, caulking done wrong as explained to the representative, the tile was fixed and toilet. Representative made it clear they would not repair/replace damaged door frame, base board and caulking. 
  
  Regards,
  
  
   
  

• Initial Complaint

  06/21/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Warrenty issue was tried to be repaired after a long back and forth and the issues still exisits. 1) The warrenty isseue for the imporper grading on th eleft side of the property and created a swamp with all the flies, alge and fungus 2) the issue was not even cottected till the manager was involved and the manger did exactly opposie of what the Horizon landscape provided. 3)Person from Horizon landscape told me that the houses are constructed very close not leaving the gap for the sun to reach the ground hence the water is always staying and not flowing. Horizon landscaping also said the builder needs to install proper french drain to get the water out. Horizon landscpaing is the people who did all the levling for the house. 4) The warrenty correction did not meet any of the things that horizon landscap person sopke. 5) The issue is still exisitng and Builder refuses to take an action on it. 6) Builder destroied the portion of the land on the left of the House that made it unUsable. 7) Builder fix as to remove very little dirt not more 1 pound to make the water flow and promised a clean out and installtion of the sod which are never done.

  

  Business response

  06/22/2022

  The Consumer's Complaint has been reviewed and the yard inspected.  The grading appears to be performing its intended purpose, and standing water is no longer present within 48 hours after a rainfall.  Therefore, no further action is intended at this time.

  Customer response

  06/30/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [Provide details of why you are not satisfied with this resolution.]

  I will not be raising the BBB Complaint if the issue was resolved the water still is not draining adter 48 hrs, there is alge and mold formed on the area where the water sits, that was not repaired SOD is not replaced the entire area slips and cusing a Hazard. All this beacuse of multiple failues of the repairs. The solution provided by the professional Landscaper is not implimented. 

  
  
  Regards,
  
  
   

  
  

  

  Business response

  07/09/2022

  The Company has nothing to add to its previous response.

• Initial Complaint

  06/04/2022

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  Closing on our newly built home of about $450,000 occurred on 4/13/22. Today, we still have not moved in our belongings so the builders (First Choice Builder/K. Hovnanian homes) acknowledge the condition at move-in, without questioning party accountability. Major issues regarding damaged materials still have not been addressed. We no longer want to deal with the builder, they will not replace damaged items done by the labor workers, nor allow the time for proper repair, nor the required skilled labor for correct repairs. They stated that we signed on closing, and are no longer responsible. There were so many issues during the 1st and 2nd walkthroughs, the finishing details that needed attention were not visible at the time. For example, in the 1st walkthrough we had to point out Quality Control issues like the framing showing through the walls as ridges on an unlevel wall, we had to request an even flat wall. The buyer should never have to use their walkthroughs to serve as Quality Control, its the builder's negligence. We have been going through their complaint process, to at least accept accountability for the damaged new materials by the labor they hired to do the work. For example, the workers used our brand new stainless steel kitchen sink and shower to wash their equipment, damaging new materials WE ARE PAYING FOR. These issues escalated to Upper Management, where Mark ****** (Senior Project Manager) was sent to asses the house. He explained to myself and husband, that the labor workers they use are considered "unskilled labor" meaning do not have any applicable skill set to construct and install a house. This information was not disclosed to us at any point during the purchasing, closing, and loan process. We would have NEVER bought this home knowing this information. Insane to pay 1/2 a million for unskilled labor construction! Hard working people/families are being taken advantage of, the builders don't care.We want reimbursement on all damaged materials.

  

  Business response

  06/07/2022

  The Company has received the Consumer's complaint and is currently working on a resolution with the Consumer to address the issues that she has raised.  Where the standard of workmanship is below what we expect, we are making the appropriate repairs and modifications.  Based upon our review of the items, many if not all of the items are cosmetic in nature and were accepted during the two walk through visits prior to closing.  We regret that the Consumer elected not to be present during the two walk through visits.  In any event, we will work hard to resolve the issues and meet the Consumer's expectations.

  Customer response

  06/07/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint. 
  

  This is the same response I have been receiving from the builder for the last 2 months. This is absolute NEGLIGENCE of the builder that isn’t solely cosmetic. The unskilled label hired to build the house was never disclosed to us the buyers at any point, until issues cosmetic/structural/health surfaced shortly after move in. This is also MAJOR company moral issues, because the buyer is unaware of this information, but the builder is 100% aware, creating a FALSE idea and expectation of the house we purchased. This is fraudulent and dangerous. The unskilled workers are not supervised nor have any standard to apply, creating damages and issues of MAJOR concern, only notable after living in the home. For example, the HVAC system had to be completely replaced because it was LEAKING FREON! I am a 2x cancer and transplant survivor, the health issues created by negligence and unqualified or legal labor for that matter, could easily have attributed to not feeling well. This approach was applied throughout the entire home, from cosmetic ( broken cabinet, damaged materials), to structural (my gate built with damaged materials not well standing), to health concerns from lack of standards. No one should go through this, nor support such POOR BUSINESS PRACTICE. There are no details on what exact efforts are being made to properly fix these issues for buyer. This is POOR company moral, and lack of business etiquette to the customer. I will take this further if needed.
  
  
   

  
  

  

  Business response

  06/07/2022

  The Company has nothing to add to its previous response other than to indicate that the process of addressing the concerns of the Consumer is still ongoing and that the representative of the Consumer who is a relative attended the two walk-through visits prior to the closing and found the home acceptable.

  Customer response

  06/08/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  

  Please see attached builder response to pointless 6th visit from the builder regarding the condensation in our windows and a SCREEN (yes something so simple) that still does not fit. They replaced the window screen with the same one that does not fit, and did not arrive with the two windows still pending replacement. This is a perfect example of how they handle the 'repairs', also an example on how they have handled the cabinets, countertops, painting, caulking, erc. This leaves us lacking all confidence that the issues will be resolved in a high quality and timely manner. We are EXTREMELY FRUSTRATED !!
  
  
  
   

  
  

  

  Business response

  06/16/2022

  The Company has nothing to add to its previous responses except to say that the Consumer's complaint regarding the issue has been addressed by the Company and by the window manufacturer.

  Customer response

  06/22/2022

  The 2 damaged windows with condensation still have NOT BEEN REPLACED. The kitchen cabinets have NOT BEEN REPLACED, the staircase had NOT BEEN REPLACED, the spindles have NOT BEEN REPLACED. The painter did a VERY VERY poor job!! The company has yet to send a certified licensed vetted skilled labor to repair the ‘cosmetic’ damages since our 1st complaint. NOTHING IS RESOLVED!  
  
  [Provide details of why you are not satisfied with this resolution.]
  
  Regards,
  
  
   
  

  

  Business response

  06/30/2022

  The Company has nothing to add to its previous responses.

   

  Customer response

  07/13/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  ***** *** * **** ** * ******** ********* ********* *** *** **** **** ******* **** ***** ********* *** *** ***** *** *** *** *** ******* **** * *** ***** ** ******** ******** My KITCHEN CABINETS are still in pieces, damaged from corner to corner, paint drips on it everywhere, MISMATCHED colors for G-d sake. Do you all enjoy taking advantage of people? There was no problem getting my money though. Should I send my bill from my twice a week visits at MD Anderson to you or directly to the senator for our district 132 and at our city hall, for the STRESS you a-holes have caused. Clearly the $400,000 + didn’t go to certified/vetted/licensed build… so whose pockets does that go to? Y’all sent someone this morning I think for our screens, and as always… NO 30 MINUTE CALL PRIOR, which the house should have been built with the correct size screens TO BEGIN WITH!! This is a s*** build, with s*** damaged materials, bc of s*** labor, run by s*** project management, delegated by s*** corporate who clearly know nothing about building or architecture. WHAT AN EMBARRASSMENT TO THE OLD SCHOOL TEXAS BUILD I GREW UP IN, shame on all of you for getting some sick kick out of messing up people’s homes.
  
  Regards,
  
  
   
  

  

  Business response

  08/08/2022

  The Company has nothing to add to its previous responses except to again state that the efforts to address the Consumer's concerns are ongoing. 

• Initial Complaint

  04/10/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  We were building with this company in Angleton TX. We told them we needed the first floor to be wheelchair accessible for our son. They assured us this could be done and we had in our contract to widen the doors and remove the tub to put in a shower. On 4/7/22 we were told by the Manager of Construction that they would not make the shower wheelchair accessible. They wanted to keep the 3 inch drop into the shower and when we explained why we needed the drop to allow for wheelchair access, we were asked why we couldn’t just pick up our son and put him in the shower. This was completely inconsiderate and his further comments were discriminatory. When we said we would hire a third party to raise the floor of the shower to make the drop smaller we were told it would terminate our warranty for the entire house. We immediately decided to terminate the contract due to being denied accessibility for his shower and the behavior of the Manager. In accordance with the Fair Housing Act, we should have been able to get the reasonable request even if we had to add to the cost more or allow us to bring in a third party to make the shower accessible. We are now being denied our refund of our Earnest money and they are trying to have us sign that it is due to buyers remorse. This is false. It was due to being denied accessibility which is unlawful in accordance with the fair housing act. Also I am almost certain that the sales office does not have an accessible bathroom. This is a violation of the ADA. If we do not have our Escrow money returned, we will be seeking legal counsel. I hope that the corporate office is as disgusted with the behavior of these employees as we are.

  

  Business response

  04/21/2022

  We have performed a review of the consumers complaint.  Based upon our review we have determined that K. Hovnanian acted appropriately in this circumstance.  No further action will be taken.

  

  Business response

  05/13/2022

  The Company has returned all of the Consumer's earnest money and other deposits as requested in their Complaint.  It is our understanding that the matter has been fully resolved.

  Customer response

  06/02/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  They are still in violation of the Fair Housing Act based on their actions. They are also in violation of the ADA with their sales office. Giving the Earnest money back does not take away these violations. This goes so much deeper than money. It’s blatant disregard for disabled people at a corporate level. 
  
  Regards,
  
  
    Brandon Barber
  

  

  Business response

  06/07/2022

  The Company has nothing to add to its previous response.  

• Initial Complaint

  11/23/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  In August of 2021 went with K Hovnanian of Houston to purchase a home. Put $7,000 earnest money down on home that was to be ready by September but got pushed back due to shortages and weather. Due to the builder trying to close out on their year end books, I was unable to get loan processed fast enough and they said my contract was voided yet I never received another contract stating that. The sales person Paul informed me that if I did everything possible to close and was unable to I could get my earnest money back. After the loan did not close in time he said that I could apply that earnest money to another house, if I used their lender. Started the process of using their lender and now Paul is saying I must pay another $7,000 if I want to get another house. This was never told to me prior nor is this anywhere in the contract. Looking on BBB too late, I see that this builder is notorious for doing these types of things to home buyers. I have yet to see any of this in writing and feel that this is unfair business practices.

  

  Business response

  12/02/2021

  As the Consumer states, the Consumer was unable to obtain final loan approval by the time that the home was ready to close.  Under those circumstances the earnest money is not refundable.  However, the Company informed the Consumer that if the Consumer chose to purchase a home in the future and use our affiliated lender, then the earnest money from the previous purchase that did not close would be credited to the new purchase.  The Company stands by this offer.  If and when the Consumer closes on the purchase of a new home, then the earnest money paid on the prior transaction will be credited at closing.  However, the new transaction will require a new earnest money deposit.  If and when the Consumer closes on the new transaction, then the new earnest money deposit will also be credited.  If the Consumer no longer wishes to purchase a home from the Company, then the original earnest money deposit is not refundable because the Consumer was unable to obtain a final approval on the Consumer's mortgage loan once the home was ready to close.   

  Customer response

  12/05/2021

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  
  
  [Provide details of why you are not satisfied with this resolution.]
  
  Regards,
  
  
  This is not the final contract, nor did I ever receive in writing a cancellation contract with this in writing and I did try to work with their lender but I refuse to be robbed of another $7,000 earnest money when no where in the contract does it say I would have to put another $7,000 earnest money down if my loan did not get approved in time. I did everything possible to try to get this loan approved and due to the fact that this company only cares about money, not about the people who are buying by the way that their employees operate within their company and since I wasn't able to get the loan pushed through in the short amount of time (3 days) from when the builder finally went down on the amount that the house was actually appraised for, it was not enough time to get the final loan pushed through underwriting by the new closing date. 
  

  

  Business response

  12/06/2021

  The Consumer was unable to fulfill the terms of the first contract because he could not close when the home was complete.  For this first contract, the Consumer used a lender of his choice, and the lender was unable to provide the mortgage loan in a manner that met the Consumer's obligations under the contract.  The contract was clear that if the Consumer did not close when the home was complete, then the earnest money was not forfeited.

  The Company then offered to credit the earnest money from the first contract if the Consumer chose to enter into a second contract on a another home and use our lender.  The Consumer was told that he must still fulfill the normal terms of a second contract including making an earnest money deposit for the second home and close on the second home before receiving the credit of the earnest money deposit from the first contract.

  If the Consumer does not wish to enter into another contract to purchase another home, then we understand and respect that decision.  The Consumer should also understand and respect that the Consumer defaulted on their purchase of the first home while the Company fully performed its obligations.  To suggest that the Company did not fulfill its obligations to the Consumer under our written agreement is disingenuous.  

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