Help!!! Duped by hard money lender!

[Matt Patrick]

Hello everyone, this is my first post on BP. I have been using the advise of this community for sometime now. Here is my situation. I just recently purchased 2 properties to fix and flip. I used the same lender on both in conjunction with some of my own funds. One of the properties had a deed restriction on it(Property can not be sold for more than x amount) from Freddie Mac for 90 days from when the wholesaler bought it. He flipped it to me in 45 days. When we closed on the property the hard money lender stated he would release additional funds to me on July 15th when the restriction was lifted. The date came and I called him and he acted like he did not know what I was talking about. I have been attempting to get through with what cash I have left and credit cards. This property is 80% complete and I have borrowed construction funds from the second property to try and get this complete. Right now I am looking at a fund shortage of $15,000. Both properties have significant equity( Property 1 (the one with the deed restriction) AVR $115,000 after all cost $30,000 equity. Second property ARV $105,000 after all cost $23,000 equity. Any feed back or ideas would be greatly appreciated.

[Jon Holdman]

Not sure I understand. Deals I've been involved with usually have a repair escrow. That appears on the HUD1's. The HML holds that money until the work is done. There are typically several draws as the work is partially completed, with a final draw when all work is done. That's all in writing and the total loan amount is known right up front.

Are you saying the lender is refusing to hand over esecrowed rehab money? Even though you've met your obligation as far as the work? Or are you saying the lender verbally said he would loan you more money at some point? Have you received all the money that's covered by your loan documents?