sorry to vent, customer trying to rip me off! Options

[Dead Air]

I do paint, wallpaper, drywall finish, small contracting jobs like bathrooms and kitchens, decks, etc.
A former customer refers me to her sister who bought a HUD house and wants me to do a couple tile tub surrounds, float plaster on the bathroom walls, tape some cracks, and generally prep for paint.
Some of the work is flat rate, some hourly.
I giver her an estimate, in writing saying I need some money down and will ask for "progress payments" as necessary.
When she realizes her family is not going to help like they said they would, she hires me to:
Paint the kitchen
paint the bathroom
wainscote the kitchen
paint the apartment
install bathroom sink with new fixtures
paint the kitchen cabinets
turn on the water
Install kitchen counter
install tile back splash over new kitchen counter

I tracked my hours to the minute and every receipt for materials.

The whole job cost, maybe, $3200. Not Much!
I go to collect a progress payment,
Customer says "I need an Invoice"
I photocopy all receipts, do an invoice word perfect and customer says I OWE HER MONEY!
(MY girl friend is a CPA, she checked my numbers!)
I demand payment for materials...She cans me off the job...I want the $500 balance, she says come get your stuff out of the apt. and I'll give you $200....I go to get my tools and ask for a check and the asshole says, I'll mail it to you, I say when and she says when you get it!
I was freaking out.
In the mean time, she changes the lock on the door and has her 250 pound kid come over for muscle.
Freakin' (IMG:http://www.914world.com/bbs2/html/emoticons/barf.gif) Bullshit!!

[redshift]

(IMG:http://www.914world.com/bbs2/html/emoticons/pinch.gif)

small claims...


M

[gregrobbins]

Small Claims is a good suggestion and when you win, file a judgement. Also if your licensed, a Machenics Lien. The lien will mess her up if she trys to refinance, or sell.

Also, let the person who referred you know in general terms what a deadbeat this person is.

[jet1]

(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif) At least you got some money up front. Good luck!

[dakotaewing]

File a mechanics lien against the property, and notify the primery lien holder in WRITTING...
The primary lien holder may have a clause in the note requiiring the immediate payment of mechanics liens -
Also file a judgment - it will definately mess with her credit for a very long time - even if she pays it, it will significantly lower her scores...


TE

[balljoint]

Ouch. I feel for you. BTDT.

I would go with a voodoo doll.

[MoveQik]

QUOTE (dakotaewing @ Jun 16 2005, 04:38 AM)

File a mechanics lien against the property, and notify the primery lien holder in WRITTING... The primary lien holder may have a clause in the note requiiring the immediate payment of mechanics liens - Also file a judgment - it will definately mess with her credit for a very long time - even if she pays it, it will significantly lower her scores... TE

(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif)

Do this the on the day that you are permitted to. There is a window in which to do it. You miss it and you really are screwed. LIke Greg said, she can't sell it or re-fi until it is cleared up.

[Root_Werks]

QUOTE (dakotaewing @ Jun 16 2005, 04:38 AM)

File a mechanics lien against the property, and notify the primery lien holder in WRITTING... The primary lien holder may have a clause in the note requiiring the immediate payment of mechanics liens - Also file a judgment - it will definately mess with her credit for a very long time - even if she pays it, it will significantly lower her scores... TE

(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif) Yep, I only ever had one customer who didn't pay me. He moved out of state and said "What are you going to do?".

I found out I could still legally take posession of his car (87' 911 cab). I sent him one legal notice to which he replied by sending me the balance due. (IMG:http://www.914world.com/bbs2/html/emoticons/smile.gif)

After that, I stopped working my part time shop for about 10 months. That was a well needed break. It was also about 3 years ago.

[Dr Evil]

HUD!? Its folks like that that give HUD owners the 'shitbag' stigma. What a trashy, ghetto thing to do. (IMG:http://www.914world.com/bbs2/html/emoticons/dry.gif)

[Joe Bob]

Put a lein on the property, file a complaint with the PD on her freaking gladular problem kid, get yer own Couisin Guido and pay her a visit.

[andys]

QUOTE (dakotaewing @ Jun 16 2005, 04:38 AM)

File a mechanics lien against the property, and notify the primery lien holder in WRITTING... The primary lien holder may have a clause in the note requiiring the immediate payment of mechanics liens - Also file a judgment - it will definately mess with her credit for a very long time - even if she pays it, it will significantly lower her scores... TE

(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif)

Many will do so in a heartbeat if they smell a deadbeat.

Andy

[Dead Air]

Thanks people, I (IMG:http://www.914world.com/bbs2/html/emoticons/wub.gif) this place!!!
I found out the cost of a lein is more than 1/2 what she owes me but I can start putting together my threatening letter! (IMG:http://www.914world.com/bbs2/html/emoticons/happy11.gif)

[Joe Bob]

So what...add the costs to what she owes ya.....

[Mueller]

do you have small claims court in NY??

sometimes just the registered letter stating your intentions to take them to court will work wonders (IMG:http://www.914world.com/bbs2/html/emoticons/smile.gif)

[brp914]

I've done the small claims thing. Getting the judgement was cake (defendant didn't even show up). The problem is collecting. You gotta pay to have the summons delivered. You gotta pay an investigator to find where she works and banks. Pay court fees. Pay to record judgement. Pay for this and that. Take time off work. If she's the pos you say she is, her credit is already crap, and probably has nothing to lose. Maybe your best hope would be that she's also a dope and doesn't realize the law was designed to protect (IMG:http://www.914world.com/bbs2/html/emoticons/stromberg.gif) like her by threatening to sue. good luck.

[ConeDodger]

Small claims is easier. You can get a judgement and file it and it will have the same effect as the mechanics lien as far as refi and is concerned.

What a deadbeat. I am having my house remodeled right now and the contractor and I have a perfectly reasonable understanding. It sounds just like the arrangement you had. DP + PP and final.

Rob

[Trekkor]

One question: Are you a licensed contractor?

KT

[dakotaewing]

QUOTE (Rotten Robby @ Jun 16 2005, 11:30 PM)

Small claims is easier.  You can get a judgement and file it and it will have the same effect as the mechanics lien as far as refi and is concerned. What a deadbeat.  I am having my house remodeled right now and the contractor and I have a perfectly reasonable understanding. It sounds just like the arrangement you had. DP + PP and final. Rob

Rob-
Not quite... It depends on who the lender is... There are some non-conforming lenders that don't care whether you have a judgement placed against you, especailly in states that have homestead protection laws like Texas....

If you are talking about a goverment insured loan...(FHA VA) the lender will require the the judgement to be paid... This only affects the deadbeat client..

If a lein is attached to the property, I don't know of a title company in the country that will insure titlework on a property with a lein against it...
If you do both, the property won't move without you getting paid, and the
borrower (deadbeat) most likely won't be able to purchase another property until the judgement is paid, due to it - A) trashing her credit - B)Lenders require it paid as condition of loan approval... Oh, and once a judgement is paid, it will still remain on the credit report and negatively affect her credit for 10 years -