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Defrauded by developer! HELP!!!!

So here's the situation: Since July 2018, my girlfriend and I have been in the process of building a small 600 square foot house in Charlotte, NC. Unfortunately, the process has been met with multiple delays. Fast forward to the begining of the summer and the house is pretty much complete accept for a few things, one of them being getting the water connected. Since then, the developer has been telling me that the city has been backed up and the water connection keeps getting pushed back.

So here's the kicker: I received a call last week from my mortgage company. It turns out that the application for the water to get connected never got submitted by the developer. Furthermore, the mortgage company has not been able to reach the developer at all. The consensus is that the developer has run out of money and is waiting on the final draw from the construction loan in the amount of $11,000 in order to pay the fee for the water to get connected which is $11,580. When I heard this news, I was absolutely devistated. Not only was I upset that I was lied to for months, but the stress from all the delays put a great deal of strain on my relationship, which partially led to my girlfriend and I breaking up.

So now I have two options: I can either default on the loan and forfeit my down payment, or fire my developer and hire a new one. The problem with that is the mortgage company will not release the final $11,000 draw until either the water is connected or if they have half of the $11,580 ($5,790). Now if they get the $5,790, they will take the rest out of the final draw and that will free up the difference ($5,210) which should be enough to finish the house.

My problem is I have no money. I only have $1,300 to my name. I have no idea how I'm going to come up with the almost $6,000 needed to resume construction. Furthermore, my closing costs have jumped up to over $3,000 since construction has taken over a year and now the property taxes will be due at closing. Obviously, I plan to sue the developer, but that could take years. I somehow need to find a way to come up with $10,000 inorder to complete and close on the house or I will be forced to default on the loan. I can't begin to explain how angry, scared, and depressed this situation has made me. If anyone has any idea about what I can do or who I should talk to, please let me know in the comments. Many thanks!

submitted by /u/tonguerra85
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source https://www.reddit.com/r/RealEstate/comments/dawtd0/defrauded_by_developer_help/
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