Builder Took The Money and Ran

What is the name of your state? Oklahoma

Hello, I am in the processing of building my first home on some land that I own. After almost a year, the builder is not finished. When I started to press him about doing work and giving me a finish date, he basically tried to bully me, etc, etc. It finally came down to me having to get another builder to finish the house. The old builder quit (I was going to fire him),

I acquired a construction loan in my name. My problem is that work was not completed that my mortgage company paid him for already. In addition, There are several sub contractors that were never paid even though he received the money from my mortgage company. These sub contractors are putting liens on my home, not finishing work and removing items that are not paid for (i.e. pump from an installed septic tank has been removed)

My question is, what recourse do I have other than just paying the sub-contractors? I might consider it to just be done with this whole mess if it was a small amount, but we are talking about an additional $50K to $70K. I am a single woman and have spent tons of money paying for "supposed" upgrades on my home. My builder is basically a thief, so why can he not be prosecuted for stealing? He is buying new cars and taking trips with my money and it seems there is nothing i can do. On top of that, instead of the subs suing him, that want to sue me! I need help in trying to figure out what direction to take.

Thank you,

Cheated in Oklahoma CityWhat is the name of your state?

Didn't you have a title insurance company disbursing the construction draws (after inspections to insure that funds were only being disbursed for improvements that were "on-site and INSTALLED")? Weren't they reviewing the construction budget at each draw, collecting the lien waivers from the GC, the subs and materialmen, in exchange for checks? Costs a few hundred more, but it's worth it.

No, I did not have the title company disbursing the checks. It was mailed directly to me with both my name and the builders name on it. However, I do believe the title company was doing checks for liens, etc before each draw. I know this is the case because about 2 months into the build, there was a lien on my home and the mortgage company would not pay until it was released. The builder said it was all a mistake, so I wasn't thinking it would be a pattern. The problem is, the builder kept telling the subs he was going to pay them and putting it off, so they didn't file the liens immediately. Like he would tell them he was getting the check on Friday. Well, he did get the check, but he didn't pay them, he was spending the money on other things. I have paid extra to have all this done (the few hundred you mentioned), but what do I do when this happens towards the end? So, basically, they inspected the make sure most of the work was complete, and then cut the check. However, he just never "completely" did the final work or paid the subs. So, the subs won't complete the job because they are owed thousands of dollars.

You need to see an Atty YESTERDAY well actually before the first contract was signed but to late for that now.

Get an Atty versed in Real Estate but honestly you are in a real deep mess with all this. Others will say sue the builder to recoup monies but the reality might be he is absolutely judgment proof and will always be judgment proof or simply file Bankruptcy.

You may have to come up with or make arrangements with these subs who have liens against your property because the bank will never convert your construction to a permanent loan with all these liens against the property.

Sorry, and see an Atty.

The OK Attorney General's office may be able to help you. They seem uninterested in cases where the builder only did defective work, but when there is an issue of not doing the work after they've been paid, they sometimes will become involved, particularly if other complaints are already on file. Add yours to it, maybe something will happen.

OK Attorneys General site: http://www.oag.state.ok.us/

Also, i bet a lot of other home buyers in OK would love to know who this is so they can avoid them! Below are some sites where you can file a complaint so at least those doing their research may be warned.

http://www.rateyourbuilder.info
http://www.hadd.com
http://www.hobb.org

You can also file complaint at the BBB. It's just another place to file so the complaints may eventually build up to the point where they report them.

OK just passed a "right-to-repair" law. I don't know if this will affect you since your issue is more about payments than defective work. But when you consult with an attorney be sure to ask if it will. I believe the name it actually passed under was Notice and Opportunity to Repair. It may negate your ability to take the builder to court even if you don't have an arbitration clause in the contracts. It has been in the news lately, and I personally don't think it's going to be at all good for consumers.

Good luck.

Have you contacted your state licensing board? In my state all contractors pay into a lien recovery fund. The funds are used to help in your type of situation. At the very least, you should file a complaint that will warn others if they check his license.

toby04 said:

Have you contacted your state licensing board? In my state all contractors pay into a lien recovery fund. The funds are used to help in your type of situation. At the very least, you should file a complaint that will warn others if they check his license.

Click to expand...

OK doesn't license home builders, only electricians, plumbers, and HVAC.

Thanks for the Info

BUK1000,

Thanks for the information. I have already started drafting my letter to the BBB. I will definitely call the others that you mentioned. I am sick about this, but I am also very mad. This guy definitely took advantage of me being nice and thinking he would do the right thing. I guess money makes people crazy. Anyway, he has ticked me off to the point that I am getting that lawyer and following through on whatever means to get retribution and make sure he doesn't do this to anyone else that I can.

I do have another question, can I file a judgement claim against him right now? Or can I somehow freeze any of his assets or put liens on his equipment? Will I be able to go after him personally or just his business?

Thank you all for all your help so far.

scaredinok, I'm not personally aware of any way you can attach a builder's assets unless you have won against him in court and have a judgment against him for damages. I could be wrong. When you talk to your lawyer, ask about that, and also how your area's court does a 'hearing on assets' in case you win. Please keep us updated, I'm interested to know how it comes out.

http://www.nolo.com/article.cfm/ObjectID/A64255DD-C94E-45BA-9F885D05851D923B/catID/FCE46694-6BEB-4A80-89B9048DA9877F61/104/308/ART/ Collecting a court award

http://www.lectlaw.com/files/adr15.htm Collecting an Arbitration award (if you're forced to arbitrate under contract)