I'm thinking aloud and looking for some ideas that I haven't come up with as yet.
I signed a building contract about 15 months ago that was due to start in may this year, at that time another investment was due to come to a close. Unfortunately that other investment ( a builder/developer) went belly up. Without retelling a sad tale of how not to invest in property I'll move on.
This builder was desperate to sign me up and get the DA into action. I agreed to sign the building contract after confirming all was ok inside it by my solicitor, as well as signing a document that instead of paying the 20k upfront for the DA I would pay the builder prior to starting construction. The builder came up with this brainy idea as I had kept stalling due to no funds to pay to get the DA started. This was totally his idea not mine but I thought a stroke of good fortune.
With the massive loss of cash and finance market the way it is I haven't been able to get a level of funding to build the property. The builder has initiated legal proceedings to recover his $20k immediately.
I was nieve to sign the contract I'm well aware of that so please no comments on the passed events. I put the cart well before the horse on this one.
I'm unable to come up with the $20k immediately + he has said he will then file suit for the lost income of his estimate of $70k from the breach of building contract. Thats 90k + courts costs etc that i don't have.
I have made 3 offers to the builder over the past 3 weeks for repayment of the 20k and all have been rejected. I called him today and he basically said he just wants the house. He won't take any result other than build the duplex ASAP and pay the 20k today or he'll buy the house and clear the mortgage.
I've offered to pay the 20k ASAP and build with him as soon as funds are available, again declined.
I'm not trying to avoid paying this debt I've just been robbed of a huge sum of money and now can't afford to build? I'm in the process of increasing my mortgage to 90% but he has today lodged a caveat on the title and the bank won't release funds when a caveat is on title.
I have been totally open and transparent through this process with the builder and his sales person and he was all ok even offering his brokers services. Infact the last conversation we had was him offering to forward funds and delay payment to get the building moving then 2 hours after that call I get an email of a thinly vailed threat of sell your has to me for 25% less than market value or I'll send you bankrupt.
I have the 1st mortgage on the house + a loan of $250k from the lost investment that takes all equity from the house + some. This means that even selling the house he cannot get a cent unless I build with him.
If I build the duplex at current sales rates he gets all his money, all my loans are paid back and theres money left to do it all again.
As the builder is not offering any form of amicable solution from a mess that he created ( I agreed to it). I'm finding little option other than bankruptcy to sort this out.
Any thoughts?
I signed a building contract about 15 months ago that was due to start in may this year, at that time another investment was due to come to a close. Unfortunately that other investment ( a builder/developer) went belly up. Without retelling a sad tale of how not to invest in property I'll move on.
This builder was desperate to sign me up and get the DA into action. I agreed to sign the building contract after confirming all was ok inside it by my solicitor, as well as signing a document that instead of paying the 20k upfront for the DA I would pay the builder prior to starting construction. The builder came up with this brainy idea as I had kept stalling due to no funds to pay to get the DA started. This was totally his idea not mine but I thought a stroke of good fortune.
With the massive loss of cash and finance market the way it is I haven't been able to get a level of funding to build the property. The builder has initiated legal proceedings to recover his $20k immediately.
I was nieve to sign the contract I'm well aware of that so please no comments on the passed events. I put the cart well before the horse on this one.
I'm unable to come up with the $20k immediately + he has said he will then file suit for the lost income of his estimate of $70k from the breach of building contract. Thats 90k + courts costs etc that i don't have.
I have made 3 offers to the builder over the past 3 weeks for repayment of the 20k and all have been rejected. I called him today and he basically said he just wants the house. He won't take any result other than build the duplex ASAP and pay the 20k today or he'll buy the house and clear the mortgage.
I've offered to pay the 20k ASAP and build with him as soon as funds are available, again declined.
I'm not trying to avoid paying this debt I've just been robbed of a huge sum of money and now can't afford to build? I'm in the process of increasing my mortgage to 90% but he has today lodged a caveat on the title and the bank won't release funds when a caveat is on title.
I have been totally open and transparent through this process with the builder and his sales person and he was all ok even offering his brokers services. Infact the last conversation we had was him offering to forward funds and delay payment to get the building moving then 2 hours after that call I get an email of a thinly vailed threat of sell your has to me for 25% less than market value or I'll send you bankrupt.
I have the 1st mortgage on the house + a loan of $250k from the lost investment that takes all equity from the house + some. This means that even selling the house he cannot get a cent unless I build with him.
If I build the duplex at current sales rates he gets all his money, all my loans are paid back and theres money left to do it all again.
As the builder is not offering any form of amicable solution from a mess that he created ( I agreed to it). I'm finding little option other than bankruptcy to sort this out.
Any thoughts?