All Forum Posts by: Heather Luu

This is why my first property is literally down the street from me and my contractor lives local and known him for years.  

Why do noobs buy property 4 states away expecting rainbows?  I am surprised this is the first time you have run into a problem not being able to keep tabs on your house.  

Quote from @Heather Luu:

Quote from @Bruce Woodruff:

a) Is this a Licensed Contractor? Is there a State licensing board? Usually a call to that agency will light a fire under any Contractor.

b) A licensed Contractor will also have a Bond. You can go after that.

c) What does the Contract that you signed for the project have to say about 'Non-Performance'?

 Hi Bruce! Yes, this is a licensed contractor. I have his business license and insurance copy. Im just unsure what to do with that. Im looking in my folder with all the stuff they gave me and there's nothing in particular that states what happens with "Non Performance." I'll do some research today about how to go after their Bond.

I would call your state contractors license board immediately and take steps to file a complaint against the contractor. Contractors live in fear of this because it sticks on their record forever when a new potential customer looks them up.

a) Is this a Licensed Contractor? Is there a State licensing board? Usually a call to that agency will light a fire under any Contractor.

b) A licensed Contractor will also have a Bond. You can go after that.

c) What does the Contract that you signed for the project have to say about 'Non-Performance'?

We’ve all been in your shoes at one time or another, unfortunately. One thing I’ve learned over the years is to always get copies of their license and insurance. This way, you have what you need if you ever have to file complaints or pursue their insurance. As others have mentioned, avoid paying for work upfront; instead, make payments based on completed work. Often, they may ask for 25% upfront to start, but the final payment should always be made once the job is finished and any issues have been addressed. Wishing you the best of luck!

@Heather Luu

Welcome to the forums...

As a rule, the final installment always needs to be paid once work is complete. I realize it's too late for that now but if you run into that again in your career just know.

 I'll just be honest...you're in a very difficult spot and there isn't going to be a straight forward or easy way to recover your funds or get the work completed. 

This is not a rare occurrence - this story is old as time. 

The issue that most run into is actually finding the contractor once they vanish. I have had an investor on a window job pre pay 11k, contractor vanished, they sued, sheriff couldn't serve them because they couldn't find them.

From their perspective - they received their money, and if they are "storm chasers" East TN and NC have unlimited work right now. Your job is at the absolute bottom of their priority list...probably not even on their list. Even getting them back out there will be an uphill battle. 

If it was me....I'd request the $45k to be refunded and everyone walk away. See if you can settle on an amount less than that. 

The most likely outcome here....just speaking from experience. You will not get them to show up to complete the work, you will not recover your funds and you will have to move heaven and earth to make this "right" 

1-See if you can settle with the contractor

2-File complaints with the BBB (assuming they are registered), file a complaint with the state attorney general

3-Sue

I used to believe there was some sort of over arching justice in the world, but then I got into real estate and became friends with RE attorneys. I quickly realized people get screwed all the time and there's nothing they can do about it. 

I really do wish you the best of luck and very much hope this works out. 

You should always be paying post work, not pre work. Any reputable contractor has material accounts everywhere and doesn't expect to be paid for labor S/he hasn't yet performed. 

File a complaint with the state. What he is doing is actually theft. I'm in East Tennessee and we just had a guy that was doing the same thing, and is now facing state and federal charges and some people have received some restitution.

@Heather Luu

Welcome to the forums...

As a rule, the final installment always needs to be paid once work is complete. I realize it's too late for that now but if you run into that again in your career just know.

 I'll just be honest...you're in a very difficult spot and there isn't going to be a straight forward or easy way to recover your funds or get the work completed. 

This is not a rare occurrence - this story is old as time. 

The issue that most run into is actually finding the contractor once they vanish. I have had an investor on a window job pre pay 11k, contractor vanished, they sued, sheriff couldn't serve them because they couldn't find them.

From their perspective - they received their money, and if they are "storm chasers" East TN and NC have unlimited work right now. Your job is at the absolute bottom of their priority list...probably not even on their list. Even getting them back out there will be an uphill battle. 

If it was me....I'd request the $45k to be refunded and everyone walk away. See if you can settle on an amount less than that. 

The most likely outcome here....just speaking from experience. You will not get them to show up to complete the work, you will not recover your funds and you will have to move heaven and earth to make this "right" 

1-See if you can settle with the contractor

2-File complaints with the BBB (assuming they are registered), file a complaint with the state attorney general

3-Sue

I used to believe there was some sort of over arching justice in the world, but then I got into real estate and became friends with RE attorneys. I quickly realized people get screwed all the time and there's nothing they can do about it. 

I really do wish you the best of luck and very much hope this works out. 

@Heather Luu  Just to clarify, you gave them an installment before the work was done? Are these insurance company funds?