Contractor starts build, provides no contract, takes off with my SBA loan money and my building materials. What are my options?

Asked over 1 year ago - Wilkes Barre, PA

In 2011, flooding in my area destroyed my home. I was eligible for help from FEMA. The decision was made to tear down and rebuild. I hired a contractor that I was familiar with. Once I was approved for my SBA loan to rebuild, the building plans were put into motion. I asked when I was going to get my contract and since my basement and first floor were framed. I got every excuse in the book. Building stopped and then the contractor ignored me for 6 months. Finally got ahold of him and he partially framed my second floor and he ignored us even more. Within the last month he completely walked away from the job, telling our police chief and not us. He on top of it stole our materials! What are my options. I just saw him working on another property and I want my $75,000 back. HELP!!!

Attorney answers (2)

  1. Guy W Bluff

    Pro

    Contributor Level 13

    Answered . This is a serious matter and you need to retain a LOCAL attorney immediately to obtain a writ to seek repossession of your materials (that he likely is using on the other project). I am surprised that he was able to get all (or a large portion) of your construction loan moneys without obtaining inspections from the Bank with each draw request.

    Attorney is Licensed in Arizona, California, and Colorado only. The opinions and comments offered are in the... more
  2. R. Russell O'Rourke

    Contributor Level 13

    Answered . You need a local construction/real estate attorney now. Check on Avvo for someone close to you that has that experience in their resume. Also helpful is someone who has consumer law experience. The longer you wait, the more difficult it is going to be to get your materials and your money back.

    The fact that they got money from your SBA loan is odd. They may also have signed fraudulent papers with your bank.

    IF YOU FOUND THIS ANSWER HELPFUL PLEASE MARK IT SO. The answers provided by R. Russell O’Rourke, Attorney-at-Law... more

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