Bad news! We may have lost money -- the builder of the home we wanted went BANKRUPT!

[Radio_Lady]

We had put some $5,000 into earnest money into escrow, and it was supposed to be held by a title company.

We're trying to sort the whole thing this morning! It doesn't look good.

Some vibes needed -- I'm so upset!

[Bennyboy]

1. Sorry...

But be thankful it is only 5 G's...... Now that the recession is in full swing, this will happen with far greater frequency and many will lose a lot more.

What ever you need to file against the builder file now. Hire an attorney if you have to (5 grand is not really enough though)Liens etc, do not under any circumstances listen to his line of bullshit. Go after him and hard right now before all his other creditors start piling on and you get nothing....

[Radio_Lady]

25. Here's the original article from the Portland, Oregonian.

http://www.oregonlive.com/business/oregonian/index.ssf?/base/news/121315650624890.xml&coll=7

If you have any expertise in this area, I'd love to hear from you.

Nobody is calling us back today.

Warm regards,

Radio Lady Ellen Kimball in Oregon

[Whoa_Nelly]

2. How long held in escrow?

If still in escrow, I think they have to give back your earnest money.

[Radio_Lady]

3. We paid on 4/04/08 = $1500, and another check for 4/26/08 for $3500.

This was a contingency deal -- we have to sell our house first (which has not happened).

[Taverner]

4. Still Bankruptcy may change the game

The builder does not have your money if it is still in escrow.

[Radio_Lady]

26. I'm very nervous about this. Nobody is calling us back.

We had a contingency agreement on a speculation home that is fully built.

The purchase was contingent on the sale of our home.

That hasn't happened yet.

[applegrove]

5. That's terrible. I'll cross my fingers for you.

[ScreamingMeemie]

6. The builder does not have the money, therefore that money

will be returned to you. No worries.

[Radio_Lady]

28. We have been told that everything is frozen for ten days.

The agreement runs out on June 23rd anyway.

[Radio_Lady]

7. We THOUGHT that First American Title held the money until there was a deal.

This morning, we called and were told that First American Title would have to "wait for the court to give us instructions."

What BS! We never signed anything! We listed our property on the RMLS in April and there has been only a little activity.

Those checks were made out to the title company in good faith!

[Mezzo]

9. Lawyer up, and fast. They might wanna give you your money back if'n they think they got a fight on

their hands.

[Zavulon]

14. Especially if their actions which led to the loss were criminal.

Best vibes, RL. :(

[Radio_Lady]

16. Nothing criminal here -- they just bought some land in other places as an investment,

but they bought at the wrong time and perhaps in the wrong places.

Riverside, California

Vancouver, Washington

Bend, Oregon

[Radio_Lady]

8. Builder's office told us that the escrow money is safe. They are in meetings over

their Chapter 11 filing.

By Monday, they should be able to release our money.

We'll see.

[Carnea]

10. Thats the exact reason for escrow.

Your money should be safe best of luck to you.

:hug:

[Radio_Lady]

13. Thanks so much. We're going have to find out what we can on Monday.

:hi:

[bertha katzenengel]

11. I'm so sorry to hear it

Good vibes and crossed fingers for you. :hug:

[Radio_Lady]

15. Appreciate your concern and thanks...

RL

[Haole Girl]

12. Sending good vibes...

and hoping you can get your money back!!

[Radio_Lady]

17. Yeah, me too... we're just going to hunker down.

[ScreamingMeemie]

19. If that money is in check form, money order form, or cashier's check

just stop pay on it. Earnest money is money that is just held and deposited nowhere, and not cashed. If it has been cashed, don't wait until Monday because that is fraud.

[Radio_Lady]

20. The checks from April have been cashed. We've been assured that the money is in escrow at

First American Title.

We can't reach our lawyer, and the people from the building company say they are GLAD they got Chapter 11 (what was the option?)
and they are still building.

The morning newspaper says they have stopped building on all the sites they have.

Frankily, this is Thursday and I don't know who to believe.

www.legendhomes.com

[ScreamingMeemie]

22. It should not be held in escrow yet if your offer was contingent.

This is what I work in. It is fraud. Earnest money is returned in its original form if the deal falls through. It has to be by law.

[Radio_Lady]

23. I don't understand, Mrs Grumpy. First American Title shows our account as $5,000.

They are a pretty big company and their representative said everything would be determined on Monday.

Our lawyer called and said we are not in jeopardy.

My head is spinning. Please PM me if you wish to add details.

[dembotoz]

18. would be nervous about buying that house.

I would imagine that out of desperation, some corners were cut.
Question would be which corners....

[Radio_Lady]

21. It was a contingency offer and we are withdrawing it -- we may have to do some paperwork.

We have messages in to realtors (2), escrow company (1) and lawyer (1).

[Radio_Lady]

24. Here's the original article -- not sure if it is of interest to anybody but us...

Maybe I can link it to the Oregon and Washington State forums.

Thanks for reading this.

Radio Lady in Oregon

[Radio_Lady]

27. UPDATE: MORE BAD NEWS...First American Title has advised us that our money has

been "placed in the account of the builder" and is now involved with the bankruptcy proceedings.

She said that she didn't know when the court would move on this matter.

[Radio_Lady]

29. UPDATE ON THE UPDATE: THANKS EVERYONE...

We met with the First American Title company escrow officer today and are convinced that the Chapter 11 filing was necessary.

The court order should come down on Monday, allowing us to drop the deal on the new house.

The president of the company assured us that if we want to wipe the contingency even NOW, all we have to do is go to their office and sign paperwork. Apparently, he has the authority to release our money because it was never in the hands of the builder at all.

So, we feel a little better.

Thanks for all the handholding yesterday. I am just posting to advise all of you that I appreciated the help.