Homebuilder Stiffs Subs, Leaving Recent Homebuyers Facing Foreclosure

In Elk Grove, California, The Sacramento Bee reports:

• Sukhwinder "Suki" Kaur bought the wrong house at the wrong time. Within months of her July closing on the two-story home in Elk Grove, work in the new subdivision stopped and the builder's parent company, Dunmore Homes, filed for bankruptcy protection. Kaur, who is paying on a $430,000 mortgage, has become the target of two lawsuits and 28 liens from unpaid subcontractors and suppliers. More than a dozen other individuals in the Monterey Village development are in similar predicaments.

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• Some homeowners are exploring the possibility their title insurance policies will pay the liens. But Kaur contacted Stewart Title Guaranty Co. and didn't get good news. A Jan. 8 letter from a Stewart Title field office says her coverage does not extend to liens filed after the policy was issued. Stewart Title issued a statement Friday saying it is working with its policyholders to "ensure … they receive the benefits of their policy."

For more, see Lien times hit Elk Grove (Lawsuits jolt new subdivision's residents).

For other posts on builders & contractors accused of stiffing customers & subcontractors, go here and go here. contractors stiff subs customers zeta