Marco Bay Homes,Contracted to demo existing home then build new waterfront home. Took first draw. Did no work. Marco Island Florida
A contract was signed with Marco Bay Homes to demo existing house then to build new house. The contractor took the first draw of 10% equal to $44,000+. After many meetings with the owner and other prinicpals we realized that this home would never be built.
The contractor also owned the mortgage company, Olde Marco Mortgage. The closing costs were astronomical and there was a $10,000 pre-payment penalty. When we contacted the lender regarding the situation their response was 'too bad, so sad'. The interest rate was going to be raised to 11% since so much time had passed. We were backed into a corner so we refinanced and paid $180,000 more. That amount paid off the existing loan, accrued interest and pre-payment penalty. The existing house in un-inhabitable. (We readied the house for demo). The market price for the property is now over $400,000 less than our loan.
Marcoarea
MARCO ISLAND, Florida
U.S.A.
1 Updates & Rebuttals
Don
Marco Island,Florida,
U.S.A.
The actual facts...
#2REBUTTAL Owner of company
Fri, September 12, 2008
The Complaint says a contract was signed as opposed to we signed a contract with MBH because the person posting this complaint never had a contract with us. The complaint was posted by an individual that was using her sons' credit in an attempt to build another spec home during the recent booming real estate market in South Florida. The individual that did have a contract with us defaulted on that contract! I contacted the person we had a contract with and asked to meet with him to explain what was going on with this transaction as I felt he was not being told the complete story. I did not here anything from him for over a year until we were served with a law suit a few months ago. We did keep the funds, as permitted in the building contract, for our time and expenses over the many months of design, only after notice of default was sent regular mail and certified mail to all parties (including their first attorney). Shortly after being served with the law suit, I contacted the person that posted this complaint and asked her if she really wants to go through with this after all she has done. Her response was Oh, we don't want any money from you but we heard you were not building anymore and we might be able to collect funds from a special fund established by the state. I assured her that although we were not building on Marco we certainly were still in business. I am looking forward to posting the results and documentation of the suit when it is completed.
Regarding the comments about the mortgage and mortgage company, I do not have any information yet as to what happened with the re-financing but I can say the person with the actual building contract was a mortgage broker. He definitely had a clear understanding of the lender, underwriting guidelines, and loan documents.
If you would like any additional information or documentation supporting this response or would like us to build one of the best quality homes in the area, please do not hesitate to contact me directly at Don@MarcoBayHomes.com.
Thank You.