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 Has anyone gotten out of their contract with Mercedes Homes? View next topic
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golffather1
Dud?


Joined: 08 Apr 2009
Posts: 2

Has anyone gotten out of their contract with Mercedes Homes?
PostPosted: Thu Apr 09, 2009 3:43 am Reply with quoteBack to top

Has anyone gotten out of their contract wih Mercedes Homes since they have filed their BK?
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BadMoon
Flash in the pan


Joined: 04 Feb 2009
Posts: 49
Location: USA

Re: Has anyone gotten out of their contract with Mercedes?
PostPosted: Thu Apr 09, 2009 5:07 pm Reply with quoteBack to top

And the correct answer would be "Yes".

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golffather1
Dud?


Joined: 08 Apr 2009
Posts: 2

Re: Has anyone gotten out of their contract with Mercedes Homes?
PostPosted: Fri Apr 10, 2009 1:10 am Reply with quoteBack to top

we are getting the run around on our closing date and i am wanting to get out of contract. i have earnest money and upgrade money totaling $11k that i want back. any chance to get that back? if so, how?
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Cali~girl
Dyn-o-mite!


Joined: 01 Dec 2008
Posts: 370
Location: Texas

Re: Has anyone gotten out of their contract with Mercedes Homes?
PostPosted: Sat Apr 11, 2009 4:43 pm Reply with quoteBack to top

No matter what state you live in hire a high powered real estate attorney, just my humble opinion.

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TiredTXBuilder
Cherry Bomb


Joined: 30 Mar 2009
Posts: 118
Location: Texas

Getting Out
PostPosted: Mon Apr 13, 2009 9:17 am Reply with quoteBack to top

You cannot get out of your contract just because a company files Ch. 11 or even Ch. 7. To get out, and get a full refund, you have to prove they have violated a term of the contract.

Before you hire an attorney, I suggest reading your entire contract. Go through each section of the purchase agreement, and all the addendums, to see if they have done everything they have committed to doing. Make notes on exactly what they must do, what you must do, and the timeframe it must be done in. If you can find and prove they have violated a term, then you can get out and get a full refund.

You need to know that this is not easy to prove. If they have done everything they committed to doing, you are probably stuck.

Suggestion … if you find they have done everything they committed to doing, and you still question the company, is it worth the $11,000 to move forward? Do you want to live in a MH home in a neighborhood controlled by them?

While that is a lot of money, it doesn’t seem like a deposit worth holding onto if you really don’t want the home. If they have followed the contract, and you still want out, try and negotiate with them about the deposits. Maybe a 60% return to you. They might be flexible depending on the location of the home, the materials used towards upgrades, etc.

If this is not an option to you (or them), and they have done everything they committed to doing (in writing), a good attorney will cost you at least $5,000 and probably a lot more. While it is only my opinion, I believe that you will have, at best, a 25 percent chance at winning.
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TX Homebuilder
Dyn-o-mite!


Joined: 09 Feb 2009
Posts: 276
Location: Houston Metro

Deposits
PostPosted: Mon Apr 13, 2009 10:43 am Reply with quoteBack to top

I am not familiar with MH. Assuming their contracts and addendums are similar to most builders your deposits are probably in two catagories.

As TTB wrote you should review the paperwork with a reason. If the fact is you are just trying to void contract because you have changed your mind you are only due certain refunds.

1. Earnest Money - this portion is defined by its title...it says you are entering the contract in "earnest". As TTB wrote; you would need to prove MH did not live up to their contractual obligations.

2. Upgrade deposits - typically this portion states deposits are non-refundable once the option is installed or ordered. Walk the home, make a list of uninstalled options, cancel the options in writing and demand a refund of those deposits. "Ordered" is a gray area. Most options do not require much notice, therefore "ordered" doesn't hold water. For instance if you chose upgrade flooring that isn't some kind of special order material it no big deal for the builder to cancel the option.

If you chose to employ an attorney I suggest you find one that will write a demand letter (costs about $ 200). Typically, builders will offer you a partial refund once they know you are serious enough to employ an attorney.

Note: You should only cancel options if you are certain you are not buying the home or can live in the home without the option.
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TiredTXBuilder
Cherry Bomb


Joined: 30 Mar 2009
Posts: 118
Location: Texas

Re: Refunding Deposits / Earnest Money
PostPosted: Mon Apr 13, 2009 12:16 pm Reply with quoteBack to top

Tx Homebuilder is right. If you are "trying to void contract because you have changed your mind you are only due certain refunds."

I have seen a significant increase in these types of buyers. They are skiddish due to market issues, money, or whatever. Don't get yourself classified into this group.

You have a contract. You owe it to them to live up to your side, and they owe it to you to live up to their side. If you have done all you are supposed to do, in the timeframe required, and they have not ... there is your out.

But, make sure it is in writing. If not, no court or arbitrator will rule in your favor. Your reason for leaving must be documented in the contract and in a formal letter to the company / division.

Good luck. Let us know how you do.
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Cali~girl
Dyn-o-mite!


Joined: 01 Dec 2008
Posts: 370
Location: Texas

Re: gotten out of their contract with Mercedes Homes
PostPosted: Tue Apr 14, 2009 5:47 pm Reply with quoteBack to top

Two excellent posts, with lots of information. However, I see one problem that jumps out, it is all the liens pre and post bankruptcy with MH which can and does cause problems for the home buyers. On another thread there is a post by AustinRealtor who closed on a MH spec home post BK, it wasn't easy plus a lot of unanswered questions remain for the new homeowner.
In my opinion I would spend the money for a good lawyer before moving forward. On a personal note, you cannot make deals with Mercedes Homes, whether it's in writing or not, been there done that.

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tjasholdem
Flash in the pan


Joined: 03 Mar 2009
Posts: 37

cancelling a contract
PostPosted: Tue Apr 14, 2009 6:11 pm Reply with quoteBack to top

one thing to find know for sure is has MH actually delivered to YOU a fully executed contract signed by a legal representative of that division of company. Often times they forget to send out executed contracts. If you dont have one that can be a potential way to recind your offer to purchase. did you sign pre or post petition? If it was pre it will be more difficult as the CRO has to approve any refunds. So far I know of 2 people that struck out for just a 1k deposit. Most likely you are hosed. However is the chance of thousands of dollars in Liens worth it? even if you win after several years are you willing to take the aggravation and potential of going into credit repair? Get an attorney, fast!
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tjasholdem
Flash in the pan


Joined: 03 Mar 2009
Posts: 37

Liens
PostPosted: Tue Apr 14, 2009 6:15 pm Reply with quoteBack to top

I know that some folkes are having huge issues trying to close on a completed spec in Houston. The title company is saying now way no how after receiving hundreds of liens and objections. Still MH is trying to find a friendly title company Shocked
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