**WARNING **
DO NOT contract with any builder who sells or deals with ALL AMERICAN HOMES, a builder of modular homes.
http://www.allamericanhomes.com/
Be forewarned, as you may find yourself in the predicament that I am presently in.
Also, DO NOT contract with LONG's TRI-COUNTY HOMES, of Marlette, Michigan, for any type of home
http://www.longstricountyhomes.com/
In March 2002, we contracted with Long's Tri-County Homes, a dealer in Modular Homes, to build us a new modular home on our existing homes basement foundation.
We selected a modular model built by All American Homes, one of several models that Long's Tri-County Homes was selling at that time.
Our contract was with Long's Tri-County Homes, and we had no contract with or dealings with All American Homes, except for the fact that that was the model home we wished built.
We had to give a down payment to Long's Tri-County Homes at the time that we ordered the home, and we were told that it would be delivered and set up by All American Homes and Long's Tri-County Homes in late May 2002.
Various delays, many caused by an over zealous township building official and Long's Tri-County Homes, pushed the delivery date to late August 2002.
Prior to delivery, we had to make a 10% payment to Long's Tri-County Homes, and they stated that the balance was due 10 days after delivery and set-up of the new modular home.
Our mortgage lender helped us secure a construction loan through a Construction Loan company that they have dealt with in the past and a 10% payment was made to Long's Tri-County Homes through the construction loan company, prior to delivery.
In mid-August 2002, the new home was delivered and set up on our site by All American Homes and Long's Tri-County Homes.
From the moment of delivery there were problems. Some windows in the new home were in the wrong place, as was an interior closet door, plainly shown on the blueprints. Incorrect doors were on numerous cabinets in the kitchen, laundry room and both full bath rooms. These problems were immediately pointed out to the personnel from All American Homes and Long's Tri-County Homes, and we were assured that these problems would be corrected. None of these problems have been corrected.
During the first week of September 2002, Long's Tri-County Homes requested that we make a final payment of the balance due. Because of the uncorrected problems with the new home, we declined to pay them the balance due, but countered with an offer of 80% of the balance due, and the final 20% to be paid once all of the problems were worked out, which was accepted by them. Our thinking was, "If we give them all that we owe them, they have no incentive to correct the problems still outstandng".
Also during the first week of September 2002, after paying Long's Tri-County Homes the 80% of the balance due, we received a notice via registered mail, that All American Homes had placed a lien in the amount of $81,000.00 on our property. Upon receipt of this notice, contact was immediately made with Long's Tri-County Homes, who assured us that this was just "standard procedure", and that there was nothing to worry about.
Between mid-August 2002 and mid-November 2002, finishing work was done on the home by outside contractors, and in mid-November 2002, we received a final "occupancy permit" from our Township Building Department, which allowed us to move into the home and prepare to secure our mortgage.
Upon contacting our mortgage lender, we found that because of the lien placed on our home and property by All American Homes, no mortgage insurance company would insure a mortgage on our property.
Remember the "standard procedure, no problems" statement by Long's Tri-County Homes? Well, there were problems and there are still problems.
Remember the "construction loan"? These are high interest loans, given for a period of usually one year. 7.75% per month. As of November 2002, we had borrowed $175,000.00 against the construction loan, and the monthly interest payments are nearly $1,100.00 per month, none of which is going toward the principal.
We were recently informed by the construction loan company that as of July 22, 2003, they will foreclose on our construction loan unless we pay the $175,000.00 now due on the loan.
Once this "problem" was brought to the attention of Long's Tri-County Homes, they finally admitted that they had not paid All American Homes for our new home.
And why? Because Long's Tri-County Homes and All American Homes were parting business dealings with each other after a long standing business relationship, and each felt that the other owed them money.
We were also told that our home was the last home that Long's Tri-County Homes and All American Homes were building together, so we got stuck in the middle.
Since November 2002 and this date (early June 2003), we have tried to get Long's Tri-County Homes to either pay All American Homes, give us our money back so we can pay All American Homes or place the money in an escrow account so that our mortgage lender can get a mortgage insurance company to insure our mortgage, and they have refused to do so.
Attempts to contact All American Homes have met with no success, as they refuse to talk to us or our attorney. And since we have no contract with All American Homes, we have nothing to go back at them with.
Our attorney has advised All American Homes that under Michigan Law the lien they placed is not valid, since, under Michigan Law, All American Homes has another recourse, i.e., they can request payment from the Michigan Builders Lien Fund, which is paid into by licensed builders in Michigan, just for this reason. And since Long's Tri-County Homes is a licensed builder in Michigan, All American Homes can draw off of this Lien Fund and the State of Michigan then will go after Long's Tri-County Homes for payment. All American Homes refuses to do this. And, the County of Wayne, where the lien was filed, couldn't care less that the lien is invalid. They will not remove it without payment of the $81,000.00
A complaint was filed with the State of Michigan Department of Consumer & Industry Services, Bureau of Commercial Services, but like any other bureaucratic agency, getting a hearing date in the foreseeable future is slim and none. Attempts to get them to speed up the process has fallen on deaf ears.
What Long's Tri-County Homes did in this matter, accepting payment for the home and not paying the sub-contractor (All American Homes), is, under Michigan Law, a felony. Plans are now in the works to file a criminal complaint against Long's Tri-County Homes, as well as a Civil Complaint, against both All American Homes and Long's Tri-County homes, in an attempt to recover the interest payments made on the construction loan since mid-November, when we could have secured a mortgage on our home, as well as attorney's fees.
We have now paid Long's Tri-County Homes in excess of $97,000.00, and we are in jeopardy of losing our home and property/
In closing, I reiterate, DO NOT have any business dealings with All American Homes or Long's Tri-County Homes.
For further information, you may contact us at:
e-mail: whit@whitworth.com
Telephone: 734-654-6411
Bill & Dorothy Whitworth
24801 Carleton West Road
New Boston, Michigan 48164-9612
This page last updated:
Friday, March 04, 2005 12:37 PM