Update: Our Own Private Reykjavik – Part 2

Posted: November 21, 2011 in Contacts, Meeting With UPH
Tags: , , , , , , , ,

The saga continues.  Last time, we wrote about our own issues, as well as Mr K’s reasons for the lack of warranty satisfactions.  Today, we’ll try and cover some of the “Bigger Picture” issues that readers of this site have brought to our attention… Starting with the issue of liens.

A Brief Lesson in Home Construction

When the subject of liens, and missed deadlines was broached, Mr K was very eager to talk about this issue.  To understand the whole story, he explained how home building works, which was really informative (we’ve never built our home, only purchased an already constructed house).  First, we were told that when a home is built, the builder usually is required to take out construction loans to cover the costs.  The homeowner’s mortgage only goes to the purchase of the home itself.  Therefore, the builder, in this case UPH, secures the financing to build.

In the past, this financing came by way of the major banks, like PNC, Huntington,  and Fifth Third.  These construction loans are usually up for review and renewal every so often.  During this review period, banks will usually extend the loan.   However, with the recent credit crunch, banks have been reconsidering this practice, and in some extreme cases, have rescinded the loans already established.    This means that work already performed on some homes needed to be stopped – and in some extreme cases – work already done went unpaid.  When that happens, subcontractors take out liens.

To get out from under this cycle, UPH has gone to private investors to cover new construction, while the homes already in progress have found traditional financing – that is, unless it was a home first financed by Huntington.

A Grain of Salt

It’s up to you to believe the explanation that was given during our meeting.  Mr K was very convincing, and like was mentioned previously, he did seem honest and sincere.    While our conversation answered most of our concerns, we are certain not all of your’s have been addressed.  Therefore, we encourage you to continue posting comments, or submitting your own stories to Mistakably Premier.

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Comments
  1. Running out of patience in Wadsworth... says:

    I’ll tell you this… we met Mr. K as well and he was sincere and convincing and gave us those same lines. Fast forward to today… we just missed our completion date (that he promised to meet when we met him) and looks like we’ll be well over 30 days behind when we move in. I’m not buying any explanations until they get off their wallets, pay their subs, and get chugging on my house. This has been a serious nightmare for the last YEAR! I’m so sick of begging someone to finish my house so we can give him $250k! I mean, come on….

  2. PO'd at premier says:

    Well I took out a construction loan to build my premier home. We paid in stages as the home was finished. After my home was complete, I started getting lien notices in the mail. This was after premier was already paid! I have over $10,000 in liens that I must pay before I can sell or refinance.

  3. LOU says:

    IM ONE OF THOSE SUBS THAT NEVER GOT PAID HE WENT THROUGH A LONG LIST OF EXCUSES FROM HOW HOME BUILDING WORKS TO NEW LOAN METHODS HERE I AM 1 YEAR LATER AND STILL HAVENT GOT PAID ON THE 7 PROPERTIES THAT I PAID TO GET DONE THATS RIGHT I PAID OUT OF MY POCKET FOR THE HOME MY GUYS DID WELL UNTIL MY BANK ACCOUNT WENT NEGATIVE PREMIER HOMES OWES MY COMPANY OVER $30,000
    ITS AMAZING CAUSE EVERY END OF THE WEEK MR.K USUALLY GOES TO HIS HOME DOWN SOUHTH BUT HAS NO MONEY TO PAY HIS SUBS ON TOP OF THAT YOUR ALMOST CERTAIN TO NEVER FIND HIM NOR ANYBODY IN THERE FINANCE DEPARTMENT THAT CAN GET U ANY ANSWERS SEEMS TO ME EVERYTIME I CALL OR GO UP THERE HES AT LUNCH THE ONE TIME I DID REACH HIM HE SPECIFICLY TOLD ME TO PUT LIENS ON THE HOMES WELL WHATS CRAZY IS THAT THE HOMES I WORKED ON BEEN SOLD SO HE COLLECTED THEM FUNDS AND NEVER PAID MY COMPANY FOR THEM SO HE JUST TRIES TO PASS THE BRDEN TO THE HOME OWNERS THATS NOT RIGHT I DONT WANT TO BUY A HOME THEN FIND OUT THERES MULTIPLE LIENS ON IT BECAUSE THE HOME BUILDER DECIDED TO TAKE TRIPS INSTEAD OF PAYING THE PEOPLE WHO BUST THERE BACKS MAKING THE HOMES

  4. Ro says:

    A few words of advice… review the details of the appraisal BEFORE you sign the draw allowance. Stay in close contact with your bank and send a letter to them requesting no money is to be released to the builder without your approval. Only your bank can be trusted with your oversight… no one else!

    I’ve met most of the subs and they are decent people who do not deserve to be unfairly treated by someone who couldn’t manage his own finances. Our bank is paying subs DIRECTLY to protect us from liens and to insure undeserving people don’t see a dime!

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