I have previously written about how our builder went under half way through our build. The bank now owns the house, is honoring our contract to complete it according to our specs and has a builder that is a bank employee that is finishing it.

My question is about overages. Everything we had peviously put into the house (5000.00 down payment and about 12,000 in plumbing and electrical overages) is being counted. We still owe about 20,000 in overages related to flooring, cabinets, central vac etc.

The bank has said that everything we pay into it will count towards the down payment, but will increase the cost of the house. That is where I get lost. So basically our 32,000.00 in overages will increase the house by that much, but then, be credited back. So we are back to our original price. Why can't the money we pay in just be deducted? Which would lower the original price by 32,000.00.

Also the bank was concerned that with the upgrades that it might not appraise as high as we need and then we'd have to pay the difference.

I hope this is making sense to someone on here, because it isn't to me! Can anyone explain this in a way that someone who is clearly not a numbers person can understand? Thanks for yur help! Cathi