Hi,

We contracted to have a house built last fall. Everything has been going on schedule until the last couple of weeks when work has almost been non-existent on the house. They've primed the walls and laid the hard wood floor...anyways our builder called us this morning and basically said he is going under. He has been paying on two spec houses that haven't sold, apparently cash flow got tight, he missed or was late for payments and the bank is calling in both loans. He is carrying our construction loan, which incidently is where we bank and we plan to get our mortgage loan. He met with the bank president today to discuss our house. They are going to meet again on Monday. He is suppose to bring in all the paper work to show who has been paid, what hasn't etc. We just talked to our loan officer there who said the bank just wants the house finished. That they need to get the loan back out of his company name before all his assets are frozen. That the bank may assume the loan and pay subs out directly. She made it sound like our house would get done, but that basically we'd be the general contractors and out builder would lose all his potential profit.

We paid the builder 5000.00 down payment and have paid about another 11,000.00 in change orders. Its a lot of money to us, but even more importantaly we are at the house daily, our kids ride their bikes through the neighborhood they believe that is going to be our new house. We designed it ourselves, its our dream house and we want it.

Has anyone ever experienced anything like this? What options are avaialable, do need an attorney? Any guidance would be greatly appreciated. Thanks in advance, Cathi