Hi, we signed our building contract with our builder subject to satisfactory bank valuation by our bank. The bank valuation came in quite a bit lower than we expected- to the point it will push our lend well into LMI territory. We told our builder that we may not be able to proceed, but they will terminate our contract and seek 3% of the contract price from us. We have paid about half of this with deposits over the past few months, and are prepared to walk away from that for work already done, but we thought subject to finance we could back out- kind of like a cooling off period.
Our builder has taken over a month to get PCVs out to our bank- once the bank had all the information they needed, they took less than 4 days to get us an answer.
Does anyone know where we stand?
We can walk away from the initial deposit but will challenge the balance of the 3% if we have a leg to stand on. Anyone been in the same boat?
Thanks again guys!