Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Friday, May 13, 2016
Homeowner Who Paid In Full For New Roof Winds Up w/ Mechanics' Lien On Her Home Anyway As Contractor Stiffs Supply Company Out Of Cost Of Job Materials
In Hudson, Florida, Bay News 9 reports:
A Hudson woman may have a new roof and a zero balance on her bill, but a supply company says she still owes money and she now has a lien on her home. “It’s just not right,” Joan Joseph said.
Joseph contacted Ike’s Roofing earlier this year to replace the roof on her home. She showed us the receipts that show she paid Ike’s Roofing about $7,000 for the work and that her balance was paid in full.
Joseph then received a notice in the mail from SRS Distribution saying they put a lien against her home.
“It states here that they, Ike’s, did not pay his bill to SRS and that they were going to start initiating a lien against me,” she said.
SRS Distribution is the supply company used for the roofing materials. SRS claims Ike’s Roofing did not pay the bill for the supplies, even though Joseph paid her bill in full.
Under Florida law, the supply company can go after homeowners for unpaid supplies, even if the homeowner paid their contractor in full. These companies can put liens on a person’s home and foreclose on that home to pay the balance.
“Generally speaking, it’s just as serious as a mortgage foreclosure,” local attorney Trent Cotney said. “A contractor or a supplier or subcontractor can file suit for foreclosure on the home to pay off the lien.”
Cotney is a lawyer who specializes in lien law and other law related to the construction industry. He is not involved in Joseph’s situation. He said homeowners should get lien releases before making final payments. A lien release protects the homeowner from the contractor or supplier from filing a lien against their home.
Homeowners can also contact different administrative agencies to file complaints.
“They can contact their local business department or they can contact the Florida Department of Business and Professional Regulation,” he said.
Joseph has done that – and more. She’s filed complaints with the Better Business Bureau and the State Attorney General’s office. Joseph also said she has a lien release from Ike’s Roofing, but there is still a lien on her home.
SRS Distribution filed a lawsuit against Ike’s Roofing in Pinellas County in April. Lawyers for SRS Distribution confirmed this lawsuit, but refused to answer questions about SRS filing liens against customers.
Ike’s Roofing could not be reached by phone or email. When we went to his business, the gate was locked and no one was there.
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Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
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ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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