This story original appeared on WXYZ Channel 7.
At home with his son, Matt Zabiega plays “Monopoly”, the world’s most famous real estate game, where one roll of the dice can make you a millionaire.
But in the real life world of real estate here in Michigan, Matt is on the verge of losing his home to foreclosure.
It all started in 2007 when Matt and his wife bought this $292,000 3-bedroom, colonial home in New Hudson.
At closing, they paid the building company Tabbi Builders. The entire purchase price and figured they were on their way to whole new life in their dream home.
What Matt didn’t know is that the builder failed to pay the contractor that installed these beautiful kitchen cabinets that cost a total of $4,000. And that contractor had placed a “lien” on Matt’s house to collect that money.
Under the law this means, if the builder doesn’t pay, Matt has to pay or he could lose his home entirely.
And unfortunately, Matt says his builder has vanished.
With the current real estate crisis nationwide, with home values plummeting, and builders bailing out of the business, thousands of people are finding themselves in the very same ugly position as Matt.
So what can you do to protect yourself if you’re buying a new home?
Ken Neuman, a veteran, construction and real estate attorney, is currently handling at least 25 construction lien cases and has 4 key steps you need to take before you close on your house.
Step 1: Hire a real estate lawyer
Step 2: Demand that your builder provide you with documentation that every contractor on the job has been paid.
Step 3: Ask your builder to set up an escrow account to pay any unpaid tradesmen.
Step 4: Make sure you know exactly what your title insurance will pay for.
As for Matt, he has now hired a lawyer to help him maneuver through this very complex game and hopefully save his home from foreclosure.