Request to Terminate Contract
The following is a chronological list of events that have led up to a lack of faith that Adair will handle the construction of our home in a fair and equitable manner.
1. Talked with Adair in Woodland, WA.. Liked what we heard about the Model 19??. Decided to go with Adair. We were told to deal with the Olympia office.
2. Upon arrival at the Olympia office we found that the price of the home we wanted was more than $8000.00 higher than we were told. A breech of trust that we excuse as someone forgot to mention that prices in Thurston Co. are considerably higher. We settle on a lesser model the 1702.
3. We inform Adair about our situation and needs to accomplish a financial goal. (Pay off as much existing debt as possible, up to $157,000; purchase home and maintain an 80% LTV).
Adair came up with a financing plan of a MINIMUM APPRAISED VALUE $341,200, LOAN AMOUNT $266,000, MAXIMUM LTV 80%, INTEREST RATE 5.875%, MONTHLY PAYMENT $1891.82.
This was a dream come true; we could pay less per month on debt and own a new house. Of course, we accepted without hesitation.
4. I approached three other financial institutions with Adair's numbers to see if I could obtain better financing elsewhere. All three told me that Adair was not using real world numbers and I should not have any business dealings with anyone who would use such numbers. I called with this information; he quickly reassured me there was nothing wrong. I excuse the other financial institutions as just saying what they said to draw me away from Adair's financing and continue with Adair. I received a phone call from an individual at one of these financial institutions; he informs me that he knows nothing about Adair and has nothing against them and could care less if I went with Adair or not; but could not sleep at night knowing that I was believing what Adair was telling me; especially the $341,000 figure and the 5.875%. He said it was not possible for anyone to give 5.875%. I figured if it's not true then I will not receive credit approval; so I call Adair Financial to find out where they are at with credit approval. I called during my Monday, 10:00am break and was informed that they were in meeting about my
loan as we speak and I would surely know something by lunch. I was not contacted by my 3:00pm break so I called again; at this time I was informed that my loan application was not only not being looked at but was near the bottom of the pile and would be looked at when it was my turn. A second breech of trust; by which I was deeply disturbed that I was so boldly lied to by either the first or second individual. I began trying to reach who assured me that I could reach him anytime either at the office or on his cell. I called Monday 3:15 and 5:30pm, Tuesday 10:00am, 12:00, 3:00 and 5:30pm, Wednesday 10:00am, 12:00, 3:00 and 5:30pm, and Thursday 10:00am, 12:00, 3:00 and 5:30pm. finally returned my call on Thursday about 6:15pm. A third breech of trust, how could I expect that Adair would respond to my needs during construction in a timely manner and not needlessly waste my money. assured me on that call that he would deal with Adair financial and this kind of thing would not happen again. called me on Friday and said that she would take over as my one stop point of contact so that there would be no further miscommunication. I asked her at that time if the numbers that Adair was using were real world numbers; she assured me they were. I told her that I did not want to pursue this any further if these figures were not going to work. She asked "then what will you do?". I said "well maybe we would have to settle for a manufactured home or something". She assured me she would do everything in her power to prevent that from happening. I specifically asked where she came up with the $341,000 figure; her response was something to the effect of that's just a number we use to make the financing package work for you. I told her that three other financial institutions warned me against such number and to ask what other properties in Rochester were going for. She assured me that the appraisal couldn't possibly come in less than $320,000 and that even if it came in at $300,000 I would still be at a better than 80% LTV. I told her that was not acceptable, I also needed money to pay off existing debt. She assured me that I was needlessly worrying and asked me to trust her. So I waited for the appraisal.
5. The appraisal was ordered while I was on summer vacation so when I returned I decided to call and find out if it had come in yet. I called Adair Financial, the individual that took my call told me It was being done right now and asked if my wife was home in case it was necessary. She told me I would have an answer by mid-afternoon at latest. I thought great that was fast and called back on my 3:00pm break to find out what the outcome was. The person that took my call told me that It not only wasn't done today but wouldn't probably be done for another week or so. A fourth breech of trust. I called and complained that this was not acceptable business practice and that it was not necessary to lie to me but just tell me what is going on. He apologized and assured me it wouldn't happen again. The appraisal came in at $285,000. A fifth breech of trust. I can understand +/- 5 to 10 percent but nearly 20 percent difference to me is negligent and proves what the other financial institutions had been saying all along.
6.I then got a disturbing phone call from my insurance agent. He said that wanted him to grant the insurance binder without providing the Appraisers full name and contact information and the date and time of the appraisal. He informed me that in all the years he had been in business, never has anyone refused such information; indeed it was essential to writing the policy and a binder would not be issued without it. He then said something that crumbled the foundation that my relationship with Adair has rested upon. He said " , I don't know anything about Adair but I wouldn't have anything to do with a company that would withhold such information, something is wrong, get out of this deal if you can." I was told by that my insurance agent is wrong and they are not providing it because they are not suppose to. No matter the excuse I consider this a sixth breech of trust. This
was the fourth financial professional that told me the same thing; usually if several people are saying the
same thing about something it is probably true.
7.I was given advice to ask that Adair Financial provide me with the documents that they refused to give to my insurance agent and to also ask for proof that I was locked into 5.875%. I called and spoke with she told me the appraisal documents were not mine to have until the loan was funded and they would not be provided, neither could she tell me the information about the appraisal that I was requesting I asked her to provide proof that I was locked in at 5.875%; she informed me that was impossible, I am in a two part loan that will be whatever the interest rate is when construction is done.
A seventh breech of trust. I was assured on more than one occasion by and that Adair had accomplished what no other financial institutions could by getting me 5.875%.
8. At some point during this whole process my check for the processing fee was cashed. I don't have a
problem with someone cashing a check that I wrote them; however told my wife and I in the
Tumwater office that the check would not be cashed without our permission. An eighth breech of trust.
9.On Thursday, July 5th, at 5:50pm I met with and to give my cancellation of contract in writing. I
read the letter to them and asked them if they had any questions. We discussed is some detail most of the letter. asked that I give him two business days to take the letter to the owner and AFS and get things straightened out. He asked that I trust him and allow him to make things right. He assured me that I would be happy with the results. I called the Tumwater office during my 3:00pm break on Monday,
July 9th, was unavailable. I called to see if she knew anything; she did not. I asked her what the amount of contract was vs. the appraised value; she gave me figures that did not give me an 80% or better LTV. I called the Tumwater office again about 3:11pm this time was available. He told me that he had talked with this morning and she told him that I had no problem
being better that 80% LTV and there would be money left over to pay off existing debt. He told me I should talk with and not if I wanted numbers. I called at 3:14pm; she seemed to know nothing about my situation and asked me for information that she would have known if she had recently been working with my file. After she punched the numbers she stated the same thing did; I was not at 80% or better LTV. A ninth breech of trust.
Throughout the course of events assured me with these words Adair hasn't been in business for 40 years by treating people unethically. I am happy for your past success and the customers of Adair's past 40 years;
however, as far as I am concerned I can no longer trust anything that Adair would tell me. It is therefore necessary that you terminate our contract immediately.
Regrettably there is no provision in the contract for Adair's abuse of customers trust, leading a customer to believe that they can achieve their dreams if they only let Adair take care of everything; in fact, there is no
provision in the contract for cancellation in the event that Adair doesn't perform in a fair, equitable and business
like manner. This should have thrown up a red flag for me in the beginning.
We feel that Adair has mislead us up to this point; and we would have never agreed to sign anything if the entire transaction had been properly presented to us. We, , ask that you cancel our contract as per Page 2, Paragraph 13, Item 4.
If I had failed to perform my duties as Owner in said contract I would have been bound to the terms and conditions of Page 2, Paragraph 14. I think the ethical thing for Adair to do at this point is what they would expect from a customer that had defaulted. I have incurred many expenses up to this point including but not limited to the processing fee, permits and repairs for my garage, loss time from work, cell phone and minutes and so on. We ask that Adair releases us from all obligations under the agreement mentioned, indemnify And , and hold harmless for all consequences. A full list of expenses to be provided upon request.
We sent this letter to Adair to terminate our contract. They ignored us; after waiting ample time I called them repeatedly until they replied.
Thier letter to be attatched later went something like this; if you terminate you will forfiet the $1400.00 processing fee and we will charge you $8963.70 for damages incurred.
I hired an attorney, he tells me that they can't charge me the $8963.70 because you actually have to suffer a loss to receive compensation for said loss. Since we never got any further than the process were in now Adair hasn't suffered any loss. He said there just trying to scare me into staying in the contract.
My attorney sent Adair a letter stating why we are allowed out of the contract; it has now been three weeks and no response from Adair at this time.
More to follow as it developes.