Legal Question in Real Estate Law in Virginia

Brand New, Structurally Defective Home

I will start by saying this is a legal matter/money problem. I will give you a very brief synopsis of a very long and complex situation.

My husband and I custom built a home 2 years ago. We hired a contractor recommended by the most reputable realtor in the area. At the time we did not know anyone, because we were just moving to the area. Unfortunately, our contractor did not know what he was doing and we recently found out, after many inspections, that our house is WORTHLESS.

We have filed a lawsuit against him and it has been a very slow and costly process. I have asked our attorney to consider getting our bank, that holds our mortgage, involved. His response was, they may not side with us and could actually ask us to pay the note in full.

My question is: How can our bank make us pay the balance of the mortgage and why wouldn't the bank side with us on this matter? I feel that the bank owns our house and it's in their best interest to help us legally fight this contractor.

My husband and I both have very good credit and we would never walk away (i.e. foreclose), however, this is draining us financially, even on my husband's physician salary.

Help! I'm desperate for a good explanation.

Thanks for your time.


Asked on 11/20/06, 11:39 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Brand New, Structurally Defective Home

I must agree with your attorney, i.e, the bank as lender has no particular interest in whether the contractor makes good on his promises and completes the job on your house as the bank made the loan not on the credit worthiness or even the construction skills of the contractor but rather based upon the bank's assessment of the credit worthiness of you and your husband and with the certainty that the note will be paid by the two of you one way or another. (And, apparently, such wull be the case.)

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Answered on 11/23/06, 12:13 am


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