Legal Question in Real Estate Law in Colorado

Re: Is This Fraud?

I see that you have already received a response to you e-mail from Roger Johnson in which he simply instructed you to go talk to a lawyer. You may feel this is not a very helpful response, but there is a reason for such a cryptic answer (with which I happen to agree). The answer to your question depends largely on the documents that you have received and signed. Without reviewing those documents, it is difficult to provide you with meaningful advice.

Also, several facts important to the discussion have not been clearly stated in your query.

First, do you own the land or were you purchasing under a land - home package arrangement? I assume from the fact that you obtained a construction loan, that you purchased the land separately, but this is an important fact.

Second, have you already accepted the completed home? I assume from the fact that the dealer is now threatening you with liens and lawsuits that you have done so.

Third, did your contract with the dealer contain a contingency for financing?

Fourth, have you attempted to obtain financing elsewhere?

The answers to these questions are important in resolving your problem. For example, if you were purchasing a land home package, your contract contains a contingency for financing, and the financing fell through, you may be able to walk away from the deal. Conversely, if you owned the land, bought the home under a contract that had no contingency for financing, and accepted the home after completion of construction, and the dealer is now simply asking for payment for the home delivered, your situation may be somewhat more difficult in terms of simply walking away.

As for the change in the purchase price, again the issue requires additional facts and, in particular, a careful review of the contracts. Specifically, did your contract with the dealer have a fixed price installed, or simply an estimate with room for increase? Did you authorize any alterations to the construction plan after the initial contracts were signed? Were such changes the basis for the cost increase?

I hope this helps you to understand the reason why the best response available to the query that you posted is, sit down with counsel, go through the details of the transaction, review the documents, and plan your best strategy. This problem involves financially serious issues and I would advise you not to try to resolve it on your own.

Although my practice includes the areas of law involved in your question, I do not have the time now to take on your case. There are numerous Colorado attorneys who can help. Try using the Colorado Bar Association find a lawyer web page. http://www.cobar.org/directory/index.cfm

Re: Is This Fraud?

You need to have a lawyer experienced in real estate and financing transactions review your file to evaluate your rights, remedies and obligations.