Home Builder Having Serious Financial Issues

[bulldogag]

I need some serious advice on my situation.

Last week, I received three bills in the mail for work my builder has subbed out, but has not paid yet. So, obviously, I immediately called him and told him.

One week later, he returned my phone call, and said he was having issues receiving payment from several closings. He said he has hired a lawyer, and should have the funds on Monday.

So, I called him twice yesterday, and e-mailed him. I have yet to receive a response.

My house has been sitting idle for 3 weeks, and the drywall was taken out last week due to another outstanding bill.

What should I do? Threaten a lawsuit? Go to the home builders association and file a complaint?

I am seriously concerned, and am at a loss for what to do.

TIA

[concretemasonry]

Call an attorney. He can do the threatening and filing of a suit.

Home builders associations are worthless in your situation. He may be a member and you are not and the association has no enforcement mechanism. All they can do is kick him out and lose the annual dues.

[bulldogag]

Thanks for the advice.

Would that even apply if our contract specifies arbitration?

[TnAndy]

I need to read stories like this to my wife.....she sometimes forgets WHY we do everything ourself, including building both the new houses we've lived in over the years with even minimal subcontracted labor.

[DeeTee]

Unfortunately these situations always seem to come down to whether or not you have paid for work that hasn't been done. If you haven't then you're in good shape because you can limit your losses and you have some leverage. If you have paid for work that hasn't been completed then the contractor has the leverage and can string you along. I've had experience with this and what I noticed was that when they had the leverage I was calling them and not getting any response. Regardless of the arbitration clause you need a lawyer. And don't believe the contractor for a minute that he's going to make it right. By the time they've messed stuff up enough to be at this point there's probably no settlement that's going to be in your favor.