Nov 15, 2020 11:14 am
Any advice on this would be greatly appreciated.
My bank and builder have an issue that becomes my issue. The Progressive Payment Schedule does not meet the requirements of the bank. I have paid two deposits 2,000 and 3,000. One for the land testing and the next for the contract signing. I have a land loan already with this bank.
Payment at Contract Signing
Deposit and preliminaries $3000
Contract Balance Payment Schedule
(1) Footings poured 20%
Then Substantial completion of: -
(2) Wall and roof framing 20%
(3) Roof covered 25%
(4) lnternal linings 15%
(5) Second fix & cupboards 15%
(6) Practical completion 5%
My problem is the bank will not continue on there pre approval because of the payment percentages in particular (6) Practical completion 5% which they require to be 10%. My loan is not large so this is 13,300 (5%).
Now the issue is I have also signed the contract. I had issues contacting the person handling my application at the bank for a week or more before I having my contract signing and after signing too with no one seemly able to help me. I contacted them on the 23/10/20. Then the 30/10/20 then 2/11/20, 3/11/20 to be finally told they were away for that week and some who was handling there work work contact me that week. They never did. So I send through all the information thinking this would all still be fine.
Monday the 9th I called again and they were not there and got a reassurance that I would hear from here tomorrow. Being a bank they use a group email and have not direct contact numbers.
Finally on Tuesday (10/11/20) I received a phone call back late in the afternoon. I made sure I had sent through everything listed on the pre approval and resent the contract. I supplied my pay slip other items as requested. The only hold up was the adjustment for selections which is included in the above amount. They did not find the payslip and card information till the Friday.
On Thursday the 12/11/20 I get an email and contact with questions on the payment schedule and a document saying that they need to be displayed with the amounts next to it. They were also unsure of the payments made as deposits as the $3000 was the only one listed not $5,000. The site testing etc had a $2,000 deposit (soil). The additions or selections page has not been issued yet to be signed. Then they say the stages and the progress payment schedule is wrong and the builder needs to issue an amended one.
I contact a person at the builders and they help me and then direct me to call the commercial manager. I discuss this with them and I send the email with the questions to the manager. I also get told in the conversation that this is the way they do the contract progress payment schedule and that they would contact them if I liked. They answered all there questions in the email and send it with a cc to me. I send a permission email and forward the email on along with a question about the information she send and that booklet which states says any percentages outside the percentages and stage can be referred to ######.
The next day friday the 13/11/20 I get ""Thank you no need to resend the payslip and credit card statements as I have located them. I will touch base shortly regarding the progress payment schedule, for future reference I’m unable to speak with the builders or any third party regarding your application directly.''' which is fair enough. I had to go out to the gf's parents as I had waited an almost 2 hours for the call. As usually phone rings while I am driving so I dont answer. They leave a message saying they will send an email and call me in abit after that. I get the email about 4pm there time stating "Please advise the builder to adjust the last stage of the progress payment schedule as it is still showing 5%. Yes some stages can be referred to credit as an exception however the first and final stages are non-negotiable. Please also confirm if you are going ahead with additions as I will need the signed additions page to provide to the valuer alongside the building contract"
I prepare an email borrowing another persons computer then which gets send late in the day, no luck for a reply or contact today just worry for myself and the gf. "I quote what I wrote I mean no disrespect. I spoke to the builder yesterday and was told that this was not negotiable as well as this is how they have always done the contract and the bank have had no issue with the payment schedule before with the 5%.". "Any deviation from the proposed payments outside the above percentages are to be referred to ######" which was referring to the deviation on the first payment maximum of 20% and the 10% minimum for the final payment with no payment to be above 35%. I assumed this could be negotiated based on the information and that it did not state it was non-negotiable. The information in the booklet is also referred to as guidelines." To me if something is written it should always be stated correctly.
I did also ask questions on how this could be resolved and if there issues with anything else.
Is there anyone you I could consult with that may be able to help?
I am starting to tear my hair out on this and have concerns which I keep to myself as I do not wish to alarm my gf as she is on a (DSP). There have be other delays but that would be covid etc. This is our plan for a future.
Any advice on this would be greatly appreciated.
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