All Forum Posts by: Katelynn Malivert

 Unfortunately this is a very common problem. I think you can come to the conclusion that the contractor is not going to finish your project. So you must act on two paths. First, as was previously suggested, try to reclaim money form your credit card companies. Also, contact your local law enforcement department or local prosecutors office. Many states have adopted laws specifically for contractor fraud. While one hopes that might mitigate some of your loss, you still need to finish your project.

Please do not consider this piling on just constructive criticism. You should not be rehabbing a property from your credit cards. The interest is too expensive. Also, when you go to refinance your high DTI and credit card balances kill your credit score. I would immediately convert your adjusted credit card balances to a fixed rate personal 5 year loan. That helps your credit and stops the bleeding.

Now you need to take stock of what is required to complete your construction project. Once you have a good estimate of the expenses you should prepare a scope of work and ask contractors to bid on them. Do not take the cheapest take the best price from a well qualified contractor. You may have to get a second personal loan or some other type of loan to complete the job. When you are finished you can try to roll up as much of the loan balances into a new mortgage but you are definitely going to pay the price for your bad contractor decision.  Sorry look at it as a great learning experience and do not repeat the mistake when you do your next project. 

What @Chris Seveney said above^^....

Also, how far ahead are they? Meaning how much of the $36,000 have they actually earned? Hopefully you are fairly even? And they had better be licensed or else you have little recourse.

If you do not get any action quickly, I would contact the local DAs office. This could be construed as fraud and/or theft.

I'm sure you don't want to hear this, but obviously everyone should check License/insurance/Bond/Workers Comp/Etc before entering into a contract with any Contractor. 

And what does your Contract say about this situation? That is a legal and enforceable document, and all entities like Lic Board, DAs office or Small Claims will want to see a legal contract.....You do have one right?

@Katelynn Malivert

1. File a complaint with credit card company immediately. Typically they will refund you the money and tell them you paid for work and they didn’t complete it (assuming that is the case) and tell them every attempt to co tact and last time you contacted

2. Were they licensed? If so file a complaint with the local licensing board

That is where I would start.