Expert: Glenn Good - 8/16/2001

Question
hello, i have a conventional mortgage says the bank but when i refinanced in march, 170,000.00. 90,000.00 went to previous mortgage, and the rest went into eescrow.? the bank says "it is a construction loan, but it isn't". also i am paying on the entire amount, without receiving the rest of whats left 30,000.00. i am having a 2nd floor put on my home. i am having a problem with the builder. (who is the architects' nephew). the architect drew up plans for me "free of charge because we are all friends". there is a statement on his drawings that he is not responsible for any inspection, etc. at any rate, the builder is horrible, my roof is falling down, bottom line he has practically ruined my house let alone the fact that the house was NOT built according to the plans! so the kicker to the story is that the architect helped me get a loan (he knows the bank president personally), and HE is the inspector for the bank to release funds!it has been raining in my house and there is mold starting, etc. so 43,000.00 later i have no house, no electric, no plumbing and a broked heart. is this usual for the architect to do th

Answer
Hello Jenn,

I am terribly sorry to hear about your dilemma. I don't know if your question was cut off or not.  The last sentence I got from you was: “so 43,000.00 later i have no house, no electric, no plumbing and a broked heart. is this usual for the architect to do th “  If your question continues from this point please re-ask any missing parts.

Here is my answer to what I did read:

It sounds to me like the architect has a conflict of interest in this job.  Has the building inspections department for the county been out to the house to do their inspections?  If so what has been the results of their inspections?  I would immediately seek the advise of a good attorney.  There are too many conflicts of interest going on in this project.  It sounds to me like you have very good grounds for legal action.  Friend or not it sounds like this architect is screwing you as bad as his nephew.  If the job is not being done as it is shown in the blueprints and he is still passing the inspections of to the bank as “OK to pay” he is in the wrong.  The nephew is also in the wrong for not building it as the architect drew it.  

Another thing I would advise is to hire an independent building inspector to come out and do an inspection for you.  His inspection report will be a valuable piece of evidence in the event of a lawsuit.  It will also give you a better idea of just how good or bad the actual construction is in the eyes of a professional that has nothing to loose or to gain by making a fair assessment of the situation.

You might also call the bank and ask them to send a different bank inspector to take a look at the construction before they pay out any more money.  Advise them of your situation.

In summery: it is definitely not the way an architect is to act.  If it is going as badly as it sounds this architect should loose his license to work as a professional architect and both he and his nephew should be sued for the damages caused to your home as well as possible criminal charges being brought against them both.

I hope this will be of some help to you.  Please do not any past friendship cloud your better judgment in this case.  It sounds like these men are doing you wrong and it is illegal.  You do not need friends like them.

Glenn Good