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

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!!!

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Attorney answers 2

Posted

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.

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Posted

He got over half of my loan money because it is a diaster loan through the government. They dish out money in time spans and he wasn't keeping up with the work between time spans. Also, as far as materials he purchased them through his company and returned "some" to the company we ended up using.

Posted

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 as a free informational service only. Without thoroughly reviewing your case neither I nor any other attorney can give you a complete answer upon which you could or should rely. Your reading of this or any of my answers does not create an attorney client relationship between us. Legal cases are often very fact specific and need a qualified attorney to properly review ALL of your materials and fully discuss your case with you before you decide the right course of action to take. YOU SHOULD CONSULT WITH AN ATTORNEY IN PERSON who has specific expertise in the area of law you are asking about.

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