New Construction Contract Fell Through

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Viewing 15 posts - 1 through 15 (of 21 total)
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  • #65411
    Kristijay
    Participant

    So I was all set to sign my new construction contract this evening with True Homes in NC. The builder insisted on only allowing 10 days to close from the issuance of the Certificate of Occupancy before requiring a $75 charge per day. I opted not to go through with the contract. Guess I’ll see what the market is looking like next year. Good luck to all of my fellow NACA buyers on your home buying journey.

    #65412
    Nelsont
    Member

    Why next year?

    Protip: if you get them to concede closing costs they will end up paying for their own fees.

    • This reply was modified 1 year, 11 months ago by Nelsont.
    #65418
    TTrumble
    Member

    Hello Kristijay,

    The key piece of information missing here is when they expected to have the home completed. Ten days from issuance of the COO is no big deal if you have the contract signed and the bank app submitted and they’re looking at a completion date of June 1st (four months is not at all unusual) for example. You’ll have your Clear to Close well before then.

    Check with your counselor. If that completion date is far enough out, you have no reason to pass on the home if it’s the one you really want.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #65422
    Keja1914
    Member

    I am building with True Homes and I hope that I won’t have to deal with that 10 day issue. My paperwork is up to date and I am working closely with all parties. Waiting on the appraisal to be ordered.

    #65425
    Nelsont
    Member

    I think the point is once the house is complete you have 10 days before a per diem is charged. Not ideal but certainly doable and probably not a reason to avoid buying if that is indeed the house for you.

    #65448
    Kristijay
    Participant

    Upon a re-read of the addendum let me clarify. I will receive 7 day notice of closing date. Closing is to occur *immediately* upon completion. The contract allows 10 days extension from closing date, but they builder is allowing 30 days total due to the use of NACA. The per diem of $75/day for each day beyond closing date will be assessed. After many grueling discussions with the builder I have decided to work with my realtor to ensure we are on top of things. Hoping for the best, but preparing for the worst.

    #65459
    Keja1914
    Member

    Good luck with the process I will let you know how my situation goes tentative closing date 3/4. Still waiting on the Certificate of Occupancy. Which floor plan are you thinking about?

    #65460
    Kristijay
    Participant

    @Keja1914 please do. I’m really anxious to see if the closing is going to happen on time. I’m looking at the Flint. It’s just me and and my dog so it should be plenty of space. Question for you. Did you lock in your interest rate before or after showroom?

    #65466
    Keja1914
    Member

    After showroom

    #65485
    Kristijay
    Participant

    Cool beans. True Homes is working to expedite my showroom appointment due to NACA so hopefully the interest rate is still fairly low by then.

    #65492
    2ndtimearound
    Participant

    @kristijay I’m in that boat right now. Contract date to close is 2/15. The home was finished early with a new desired close of 2/3 sent from the builder. We started our NACA process in May. The contract was signed back in August. Things progressed well and timely with the bank app, closing disclosures, certificate of occupancy, appraisals, etc. Still, we are waiting for CTC with the threat of per diems knocking at the door at the end of the week. And there are no new conditions for us to address in our file.

    If you’re committed to doing this, stay on top of everything as much as possible and try not to let yourself think it is smooth sailing until you have the keys in your hand. For us, it has definitely been stressful.

    I’m choosing to remain hopeful. We’ve done NACA before and it’s a great mortgage product. Still, @TTrumble, the truth is that we worked hard throughout the process – knowing how it can be, the CO was issued back on 1/29 and we still don’t have our CTC. I agree that it should be enough time, but my reality is that it may not be.

    #65501
    Kristijay
    Participant

    Thank you for sharing your experience @2ndtimearound. That is exactly what I’m afraid of. Doing everything I can, but being charged for things out of my control. I know it’s a gamble, but if it works out in my favor it will be worth it. I hope everything works out for you!

    #65717
    2ndtimearound
    Participant

    @Kristijay Just wanted to give you an update. After a lot of stress and phone calls, our CTC final came through last Wednesday and we closed on Friday and got the keys. We made it – just in time!

    Be prepared to advocate for your own file. If you get into a difficult situation, advocating for your file’s progress is like acquiring a part-time job. It will take a lot of effort, but in the end, it could all be worth it, as you mentioned.

    I hope your process is a smooth path to homeownership.

    #65730
    Kristijay
    Participant

    Awesome! I’m glad everything worked out even though it was down to the wire and stressful. Thanks for the update. I hope to share my success story as well and I will most certainly advocate for myself in the process. Enjoy your new home @2ndtimearound!

    #66238
    Keja1914
    Member

    @kristijay Just closed on Wednesday now the fun begins. Best piece of advice make sure you have your homeowners insurance setup properly. We almost didn’t close on our day because I had to get proof that I changed the effective date to my closing date.

    Thank you NACA!

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