A Clearwater, Florida couple is at risk of losing their home because a window company they rented allegedly failed to pay the supplier.
Andrea Atherton and Mike Gonoub bought what they envisioned as their “retirement Shangri-La” and, like many Florida homeowners, hired a contractor to install hurricane-resistant windows and doors, local ABC affiliate Tampa Bay 28 (1) reports.
Months later, the job was left unfinished, the company went silent, and their home was foreclosed on for nearly $39,000.
“It makes me feel like I’m doing something wrong, like I’m breaking some kind of law,” Gonoub told Tampa Bay 28, which first reported the story. “I’m a consumer who needs new windows, that’s all.”
This couple’s story highlights a little-known risk in home renovations: Even if the contractor is paid, if others in the chain haven’t paid, you could still be in danger and they could come after your home.
Last year, Atherton and Gonoub hired Mister Window to install new sliding glass doors and windows using a 12-month grace period financing plan offered through a financing company the contractor worked with.
Initially, the project seemed to be progressing. The couple said the doors failed inspection due to minor issues, but those were fixed. But one critical step was never completed: sealing the doors with covers to ensure they were completely weatherproof.
The company planned a return visit in January to finish the job. But they never appeared and communication became impossible.
“I called every number I had for Mr. Window and they were all closed,” Atherton said.
When they couldn’t reach Mister Window, the couple tried to hire another company to complete the project. However, they claim that no contractor wants to undertake a job that has been examined and partially completed by another company.
Then came attachment.
The project was financed, which means a third-party lender paid the contractor, but it appears Mister Window hasn’t paid all of its suppliers. A supplier working on the project claims he was never paid. They filed a lien on the couple’s home for $38,926.68.
Mr. Window remains difficult to track down. An attorney representing the company told a Tampa Bay 28 reporter that Mister Window plans to file for bankruptcy, but there is no record of them doing so yet. The company declined to comment beyond that.
“They could just go declare bankruptcy and move on,” Atherton said. “What about us (1)?”
Read more: 5 essential money moves you should make after saving $50,000
Atherton and Gonoub’s case is not unique and illustrates the risky side of home renovation projects.
Even relatively simple jobs like replacing windows and doors may require more than one vendor. This increases the risk of something going wrong.
When the contractor is paid directly by the homeowner or by the lender if financing, it is the contractor’s responsibility to ensure that everyone they work with on the job receives their fair share. However, this does not always happen and the consequences can be serious.
If a supplier is not paid, a mechanic’s lien may be filed against the property; This essentially gives them the right to force a sale, called foreclosure, as a way to secure payment if the debtor defaults on their debt. But foreclosures are rare. A lien is a way to legally pressure a supplier or contractor to pay, according to a statement from construction payments company Levelset (2).
Florida also has a Virgin Mary option: the Florida Homeowners’ Construction Recovery Fund. The board that licenses construction professionals in the state maintains a fund that homeowners can turn to for assistance if they have suffered losses resulting from the financial mismanagement of a licensed contractor or construction company and have exhausted all other options for receiving payment (3).
Here are some steps experts say homeowners can take to reduce the risk of falling into the same trap as Atherton and Gonoub.
1. Request a lien waiver: You may consider requesting lien waivers from contractors, subcontractors, and suppliers before making payment. These documents confirm that they have been paid and waive their right to file a lien.
2. Don’t pay everything upfront: The Federal Trade Commission recommends homeowners avoid paying the full cost up front and set up a payment plan based on work completed (4).
3. Research contractors carefully: Check licenses, insurance and complaint history before hiring. Ask for references and verify employment records. Atherton and Gonoub weren’t the only customers who had a negative experience with Mister Window (5).
4. Consider joint checks or direct deposits: Paying suppliers directly or using joint checks with your contractor ensures funds reach the right parties and reduces the risk of liens (6).
5. Understand your financing agreement: If you are using contractor-arranged financing, read the terms carefully so you know when payments will begin and what happens if the work is not completed.
Join over 250,000 readers and get Moneywise’s best stories and exclusive interviews first; Clear information compiled and presented weekly. Subscribe now.
We rely only on vetted sources and reliable third-party reports. For details, see editorial ethics and rules.
Tampa Bay 28 (1, 5) level set (2); Florida Department of Business and Professional Regulation (3); Federal Trade Commission (4); Faegre Drinker (6)
This article provides information only and should not be construed as advice. It is provided without any warranty.
