New Homebuyers In Limbo Over Liens
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Updated: 9:57 PM Nov 1, 2009
New Homebuyers In Limbo Over Liens
Subcontractors haven't been paid by builder
A metro builder has been forced to close claiming that stimulus money didn't help his market in more expensive homes, but he left behind unpaid bills that has created a domino effect.
Posted: 9:05 PM Nov 1, 2009
Reporter: Mike McKnight
Email Address: sixonline@wowt.com
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A metro builder has been forced to close claiming that stimulus money didn't help his market in more expensive homes, but he left behind unpaid bills that has created a domino effect.

Chris and Krista Austin thought by now their young family would be living in their new house, but a shocking development left them on the outside looking in.

Just three days before closing for two families, the seller and buyer, the emotional ceiling caved in. Six subcontractors filed liens totaling about $17,000 because the builder, Lifestyle Homes, shut down without paying them.

“I have two small children, a wife, a mortgage, truck payments, payroll to be paid, this is kind of my last way of getting paid is to file a lien,” says concrete subcontractor Phil Henderson.

The liens stopped the Austins from closing and they had already sold and moved out of their house. “Suddenly we had to find a home and we're homeless and we had to find a place to stay and we had to find storage for all our stuff,” says Krista Austin.

The house is three months old, but the owner moved and must sell due to a divorce. “My client was shocked, he didn't understand that how the liens could be filed on his property when he had paid for the home in full,” said Aimee Melton, attorney for the seller.

Lifestyle Homes didn't pay subs and neither the buyer or the seller can afford $17,000 to clear the liens.

One real estate attorney has heard the story before. “This happens a lot and the first thing people ought to do, unless they are experts, is to hire a good real estate lawyer to represent them,” says lien law expert Paul Lapuzza.

The home seller who moved out is allowing the buyers to store all their belongings in the garage while the sale is on hold. “This is our possessions, everything we own,” says Chris Austin.

Subcontractors have 30 days to foreclose or the liens dissolve. “We need a backup plan if the liens don't come off the home,” says Chris.

The Austins say for the next month they'll sit tight in a small apartment. “We're hopeful and have our fingers crossed and hope someday we'll have this house,” says Krista.

The seller's attorney is negotiating with subs in an effort to release the liens so the sale can move forward. If not, the Austins must find another home and risk losing fee money and their down payment.

The owner of Lifestyle Homes did not respond to our phone or e-mail messages.


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