Stiffed Suppliers Slap Liens On Homeowners As General Contractor Files Bankruptcy

In Milwaukee, Wisconsin, the Milwaukee Journal Sentinel reports:

• Two weeks ago, Ken and Laura Weiskopf were waiting for kitchen cabinets to arrive. The Milwaukee couple would then install flooring, add appliances and soon move into their new home on N. 117th St. near W. Brown Deer Road. But the cabinets never came, and the Weiskopfs soon discovered that the company supposedly shepherding their project hadn't paid suppliers for the cabinets or for other materials used to build the two-story home.

• The Weiskopfs are among dozens of home buyers nationwide who are realizing that building their dream home is turning into a nightmare. The company, President Homes, filed Friday for Chapter 11 bankruptcy, which provides protection from creditors while a company reorganizes.

• In the meantime, unpaid suppliers are refusing to deliver more material and are filing liens against homeowners' property. That means in many cases construction is halted, loans are delayed and homeowners are left with major headaches. Some people could even end up paying twice for their building materials.

Among the suggestions in the story for homeowners to protect themselves from financially strapped general contractors:

• Get a payment or performance bond that acts as an insurance policy. If the contractor doesn't pay subcontractors, the bonding company will.

For more, see 'I just want my house' (Unpaid suppliers stop deliveries, file liens against property owners).

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here, go here, and go here. contractors stiff subs customers yelbow