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05-17-2007, 12:14 PM #1
Fixer Upper
- Join Date
- May 2007
- Posts
- 17
Construction Draws
Are there any federal or state (Tennessee) laws protecting someone building a home when the construction draws are being handed/wired from the loan company to the contractor *without* the buyer being involved.
What if the contractor loses, let's say, a third of the construction draw.
Should the home owner be responsible? How about the lender or contractor.
Thanks.Mark Tew
IT Director
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05-17-2007, 02:21 PM #2
Condominium
- Join Date
- Dec 2006
- Posts
- 325
How did the builder manage to lose draw money????
Obviously i would say they are legally accountable for any funds they recieve.
Many lenders have you and the contractor sign off on the draws so there are not problems.
But bottomline I guess is the lender is loaning you the money and you signed to be liable to pay it back...
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05-29-2007, 05:29 PM #3
Fixer Upper
- Join Date
- May 2007
- Location
- Santa Fe Springs, CA
- Posts
- 46
If the lender is doing that, they have their own inspectors insuring that things are done. I worked for banks for a long time doing this sorta thing. I can assure you that the bank is protected and won't let money get away without services being provided.
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