At the end of all of this, my basic question is whether I should be looking for a lawyer or not at this time.
2 1/2 years ago I got a construction loan from a smaller local bank to build my house here in Colorado. It was found through a mortgage broker who also was paid to get us the final loan once the construction was complete. With the housing market drop, we could not get a final loan anywhere since now the house was worth less than the loan's value. This went on until a year ago when the bank extended our construction loan for 3 years in hopes that the market will come back. We have paid faithfully on the loan every month, we make enough money to make the payments on the final loan, just need a higher value that appraisers cannot give us.
A few days ago the mortgage broker called to see if we wanted to try again (he still owes us and is a good guy to remember,) but nothing good came of it since values are low and probably going lower. He did mention something interesting though, the bank that we got our construction loan through is on the verge of failure. I don't pretend to understand all the jargon but the bank's Texas ratio is really bad and one bank/CU website gave the bank 1 out of 5 stars for it's current situation. The mortgage broker said that if the FDIC takes the bank then we would have to get a loan somehow, but they may have to reduce the value (and I assume the FDIC takes a loss on the rest.)
So again, what I want to make sure of is that I should not be out there looking for a lawyer to make sure all of our ducks are in a row. I don't necessarily want to not pay my fair share but at the same time I do not want to lose the house I have worked so hard to build.
Thank you for any advise anyone can provide.
2 1/2 years ago I got a construction loan from a smaller local bank to build my house here in Colorado. It was found through a mortgage broker who also was paid to get us the final loan once the construction was complete. With the housing market drop, we could not get a final loan anywhere since now the house was worth less than the loan's value. This went on until a year ago when the bank extended our construction loan for 3 years in hopes that the market will come back. We have paid faithfully on the loan every month, we make enough money to make the payments on the final loan, just need a higher value that appraisers cannot give us.
A few days ago the mortgage broker called to see if we wanted to try again (he still owes us and is a good guy to remember,) but nothing good came of it since values are low and probably going lower. He did mention something interesting though, the bank that we got our construction loan through is on the verge of failure. I don't pretend to understand all the jargon but the bank's Texas ratio is really bad and one bank/CU website gave the bank 1 out of 5 stars for it's current situation. The mortgage broker said that if the FDIC takes the bank then we would have to get a loan somehow, but they may have to reduce the value (and I assume the FDIC takes a loss on the rest.)
So again, what I want to make sure of is that I should not be out there looking for a lawyer to make sure all of our ducks are in a row. I don't necessarily want to not pay my fair share but at the same time I do not want to lose the house I have worked so hard to build.
Thank you for any advise anyone can provide.
