An extension on a commitment letter

Asked by choward, Starkville, MS Wed Dec 5, 2012

I am in the process of building a home. The problem I am faced with. I received a letter from the bank stating a "notice of Payment" for a certain amt. When I called the bank to see why I recieving the letter. I was told that I have met the months put on the commitment letter for the home to be built which was 3 months. I am dealing with 2 banks. One bank gave me the commitment letter, and the other one is handling the construction loan. The home is not complete yet, it is 45 days out before completion. I was told that they will give me 60 day extension on the money that the bank already told me I was qualified to build the home, and they want me to pay $646.00 of interest for the remainer of loan which they are giving me the extension on. I feel like this shouldn't be my responsibility to pay, because I am not the one who is building the home. What are my options

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Carla Green, Agent, Breckenridge, CO
Sat Dec 15, 2012
Unfortunately this isn't a real estate question, this is a legal issue and you should consult an attorney. It will depend upon what you agreed to in your contract. I did have a client with a similar issue, they found in the end it would have been less costly to pay the interest than the attorney cost, so caution is suggested.
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