The market for new homes is predicted to thaw out this spring.

In the meantime some smaller builders are struggling to pay bills until home sales pick up, especially sales for higher priced houses.

It's a lesson in economics some subcontractors are learning the hard way – one which shows the system isn’t always fair.

Drywaller Jim Tracy’s six employees wouldn’t work for him if he didn’t pay them.

So Tracy can't cover his frustration over not being paid about 13-thousand dollars by a home builder months after completing work on a 300-thousand dollar house.

Tracy says "We had to dip into our savings quite a bit to come up with the money just to keep afloat because my suppliers expect me to pay my end. My guys have families, too, so I paid them."

About eight subcontractors thought they had been protected by liens that had to be paid off when the house was sold.

But the drywaller was shocked to find his lien paperwork was no good because the house has been foreclosed on by a bank.

Real estate attorney Tom Penke represents the builder, Pearl Construction.

"My client, the builder, lost the house and that means all of the subcontractors lost their interest in the house," says Penke.

But the builder who has refinanced his own home to raise money hopes to smooth out relationships with subcontractors.

Penke says "He's definitely not walking away. He's a home builder and he's here to stay. He'll make it right with all the subcontractors no matter how much time it takes."

Drywaller Jim Tracy says trust and a handshake with a builder may not be enough for every subcontractor to stand on anymore.

"Now if people are a little bit late with payments, maybe a week or a couple of days, the first thing on your mind is, is this going to happen again?"

This subcontractor believes sunny days are ahead in the housing industry and he's hopeful he won't have to lean on lien laws again.

The owner of pearl construction has a new banker who has faith the builder will remain in business.

That's why his attorney is confident all subcontractors will be paid eventually.

Another attorney who represents several builders says he's seeing an up turn in sales of lower to moderate priced homes.