After losing his home due to financial problems a few years ago, Gabriela Lopez and her husband worked hard to rebuild their credit, save money and buy a dream home.
The couple, who have five children and live in a two-bedroom home in the Lanaway Bay area, about 60 miles northwest of Fort Worth, finally qualify for a loan. In January, they signed a contract to build a 1,947-square-foot four-bedroom home to be built in the Wise County community of Boyd, near the urban area of Dallas Fort Worth.
Construction was slow, but the builder Doug Par Custom Homes, Suddenly canceled the contract.
“It feels like they’ve torn the floor covering from under our feet,” said Lopez, a longtime resident of Wise County, who works as a receptionist and assistant at the South Lake Clinic. Her husband, Jose Juan Lopez, works in the crushing work in Wise County.
Doug Parr Custom Homes employees did not respond to messages left to anyone calling the company’s office in Boyd or to email to the company and Clinten Bailey, Chief Operating Officer of Doug Parr.
Rising construction costs drive the trend
This retreat of the Lopez family is the latest example of the tendency of the North Texans to sign contracts with new homebuilders and have their contracts broken during the construction of the house. In the case of Lopez and in many other examples Contractors cite rising costs for construction materials such as timber..
“I’ve been doing this for 20 years. I’ve never seen it,” said Rick Shelhorse, branch manager. Synergy One loan at PlanoSaid in an interview. He said his office has three customers, including the Lopez family. They were told by the builders that they would have to pay thousands more dollars if they wanted to keep the house.
In the case of Lopez, she was notified on June 25 that the price of her $ 320,000 home would be raised to about $ 384,400 and could either pay additional money or leave the contract. Three days later, before she notified the builder of her decision, Lopez received a letter notifying her that it was no longer her decision, and the contract was canceled by the builder.
“I think they’re just taking advantage of the market. They can do it to people because they know someone will pay for it,” Shellhorse said.
In a letter on June 28, Bailey, Chief Operating Officer of Doug Parr, wrote to Lopez that the contract had been cancelled. Limited to soaring material costs. “
But Lopez and her realtor, Ryan Burns, said there was no such controversy or misunderstanding. When talking to company owner Dougpar on the phone on June 25, Lopez expressed concern about whether he was eligible for a loan that was nearly $ 65,000 higher than the original loan, but said yes to the high price. “Or” no “he said he never said. ..
Burns working with Kathy Summons Team Justin’s JP & Associates said he repeatedly asked the builder for evidence of a price increase, including the date the builder purchased the material, but refused. He visited the builder’s office directly on June 30, but said he was told to leave.
Lopez, who also has a second job as a caregiver for older clients, said he didn’t know what to do next. Families can stay at home in the Lanaway Bay area, but it is cramped for such large families.
She said the children, who were excited to move to their new spacious bedroom, were hurt and confused by the loss of their home.
Expert: Ask a lawyer to review the contract
Future home buyers should Please read the contract with the builder carefully Some real estate finance and legal experts have said to make sure they know the languages that may allow builders to raise selling prices. In new home construction, contracts are often written in favor of the builder. For example, buyers will find it difficult to cancel a deal, while sellers will find it relatively easy.
Experts say it’s worth spending hundreds of dollars getting a lawyer to look at the contract before signing it.
And Lopez was even more annoyed when he learned that another Dougper custom home buyer on the same street wasn’t required to pay a high price for construction costs. She knows this because her lender, Synergy Lending, also represents other buyers.
“I thought they were raising all prices at the same time,” she said. “Why are we?”
“I still don’t understand how you can sign a contract and it doesn’t mean that,” she said.