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Michael Meadors & Karen Dudnikov PO Box 87 Hartsel, CO 80449 1/10/2001 Michael and Karen: The following is in response to the two letters that you sent to my office. You may pick up your appraisal here at our office. Please call us to let us know when you will be here so that we will have it ready. According to our records there were only three draws, therefore I have no record of a Draw 4. As for the over runs on you project, you approved, authorized and ratified the amount set forth in the Draw Requisitions. (See the attached Draw Requests) Grand West Financial, Ltd. Is not responsible for cost over-runs. Please refer to section 9 of the Permanent Loan Contract. As for why it went over, that is an issue that you need to take up with your general contractor. Multiple times you have threatened Grand West Financial, Ltd. with legal action for the cost over runs that you are incurring on your project. We feel these threats are unfounded because Grand West Financial, Ltd. Is not responsible for cost over runs and you have approved all draws. Please refer to section 14 of your Permanent Loan Contract. To address the issue in you second letter. A final CO from Park County is not a closing condition of the permanent financing. Grand West Financial, Ltd. Drew documents in December of 2000. You made a choice not to close on those documents. Grand West Financial, Ltd. is prepared to close your permanent loan. The delay of closing is because of you choosing. It is Grand West Financial, Ltd's opinion that you are in breach of the permanent loan contract page 4 section 12. We also have indication that you have moved into the property prior to closing of the permanent loan. If this is the case, this puts you in breach of section 13 of page 4 of the Permanent Loan Contract. Grand West Financial, Ltd. may seek the 1% penalty per this agreement. It is our recommendation that you properly resolve these issues immediately and give us written instruction to re-draw you closing documents so that we can close your permanent loan without further delay. Should you have any further questions please feel free to give us a call. Sincerely,
Steven H. Hoskins
Cc Kevin J. Marks – Grand West Financial, Ltd. |