Defaulting on a new construction build contract - please advise

[rc737]

Does anyone know if defaulting on a contract to build a new house affects your credit rating? We had signed a purchase agreement on a new house but the workmanship on the house has been really bad and it failed an independent pre-drywall home inspection, the builder is refusing to fix issues, so we are thinking of walking away and defaulting on our contract to buy the house. But I was worried this would impact our credit.

[cashnocredit]

Construction contracts spell out what constitutes default and what remedies both parties have so start by reading it carefully. They are usually heavily regulated by the state so you should check your state laws as well. It could well be that you didn't default. Contracts will usually have cure periods for various events including defects in the construction. Understand what those are. Depending on the amounts involved it would probably have to go to court for resolution unless the parties agree. A judgment would likely be reported.

Edited April 24, 2014 by cashnocredit

[nysbadmk8]

Does anyone know if defaulting on a contract to build a new house affects your credit rating? We had signed a purchase agreement on a new house but the workmanship on the house has been really bad and it failed an independent pre-drywall home inspection, the builder is refusing to fix issues, so we are thinking of walking away and defaulting on our contract to buy the house. But I was worried this would impact our credit.

If you default on the contract, they will either Let it go, Or try and obtain a Judgement.

 

Since It failed a Independent inspection, I would hire an attorney and go over your legal options contract wise.

 

Walking away from a contract never works out in the long run.

[CG in TX]

 

Does anyone know if defaulting on a contract to build a new house affects your credit rating? We had signed a purchase agreement on a new house but the workmanship on the house has been really bad and it failed an independent pre-drywall home inspection, the builder is refusing to fix issues, so we are thinking of walking away and defaulting on our contract to buy the house. But I was worried this would impact our credit.

If you default on the contract, they will either Let it go, Or try and obtain a Judgement.

 

Since It failed a Independent inspection, I would hire an attorney and go over your legal options contract wise.

 

Walking away from a contract never works out in the long run.

 

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