Contractor walked with money and permits expired in New Orleans

[Adam Broussard]

We've committed the cardinal sin and paid the contractor before the work was finished. The contractor walked with the money and never finished out the work and the permits. This was an FHA 203k Loan. Is this worth bringing to a lawyer? Any advice would be appreciated!

[Andrea E.]

@Adam Broussard that's wild. I'd probably start by taking my complaint up with the FHA consultant's supervisor. I bought my home with an FHA 203k streamline loan and the fact that they kept the money is what literally saved me. My contractor tried to act like he couldn't continue the work without getting more money (in a streamline, you get 50% up front and 50% upon completion). Because the money was with the lender and out of my hands, the GC had to just figure it out and finish the work. I was also able to make sure EVERYTHING I wanted completed was completed because I was responsible for calling the consultant to come review the property when I thought it was done.

Obviously, you are well past this point, but if the work was not complete and the consultant signed off, then liability points to them at this point. It may be worth your time to at least get a free consultation with a real estate attorney