A COUPLE has been drained of hundreds of thousands of dollars after issues with a contractor building their retirement home.
Not one, but two homes, were left incomplete years after construction began.
In March of last year, Arizona residents Elizabeth Matthews and her husband found themselves in a legal battle with brothers Andrew and Gabriel Carranza, operators of Settlers West Home Builder LLC, per Tucson CBS affiliate KOLD.
They sued the pair for fraud after they commissioned the company to build their “dream home” and an additional guest house.
“We are senior citizens, and we have been waiting our whole life to do this project,” Matthews told the outlet.
“We have the right to know where did our money go. It didn’t go to our project.”
In May 2022, the pair had entered a contract with Settlers West Home Builder to build an over $1 million house in the Catalina foothills, per the suit documents.
Matthews and her husband had paid for the property mostly with a bank loan and distributed $150,000 up front to the brothers at the time for deposits.
Settlers West Home Builder, then an officially licensed contracting company as per the Arizona Registrar of Contractors, started breaking ground.
Even so, the couple claimed they encountered delays.
“That money was given to them by check, and they cashed that check but didn’t deliver a lot of things,” Matthews explained to KOLD.
NEW ADDITION
In July of the same year, Settlers West Home Builder allegedly convinced the couple during construction that a second contract for a customized guest house on the property would also be a smart investment.
The price tag was more than $300,000.
According to the suit, the Carranza brothers told the couple they’d get a discount if they refrained from taking out a loan like they did for the main house and instead paid half up front in cash.
Matthews said that while they “didn’t have the money,” the sale of their old home covered the total.
Another $150,000 check was then given to the LLC.
Tips on spotting property scams
These five tips on avoiding real estate scams have been shared by The Bellamy Law Firm.
Fake Owners:
This is where properties are listed for sale by scammers who do not own them. They may ask for a deposit to “hold” the property until you can view it to lure in prospective buyers. Be wary of people who ask for money upfront and before signing any documents ensure you ask to see the tax records and deeds.Fake Real Estate Professionals:
Scammers pretending to be real estate agents. Prospective buyers can check the Board of Realtors website for the individual and their real estate license to confirm their story.Cash Offers:
Warning phrases for this are: “We pay cash for homes” and “We buy ugly houses.” This often sees people sell their homes for much less than the going market value and those who are hard-up are often victims.Predatory Lending:
Some mortgage lenders may urge borrowers to repeatedly refinance their mortgages when it is not needed so they can get more cash on hand. It is also important to be suspicious of lenders who come to you before you have requested help.Bait-and-Switch Moving Companies:
This is where the moving company gives you an estimate for your belongings and then increases the cost when they arrive which pressurizes customers to accept the new offer. Another version of this is when movers pick up your belongings but hold them hostage and refuse to deliver them until more money has been paid. People moving homes should ask for a license number from the moving company and check for complaints with official companies like the Better Business Bureau and the Federal Motor Carrier Safety Administration. It is also worth shopping around by getting multiple quotes and holding off on paying until the move has been completed.Source: The Bellamy Law Firm
DELAYS ON DELAYS
Delays continued soon after, including particularly lengthy ones for permits, according to the suit.
Eventually, the couple got fed up and wanted the $150,000 deposit for the house back, but never saw the money again.
Another $105,000 was invested by the couple in the guest home after indication that it would be finished, but that also didn’t happen, per the suit.
This was on top of $60,000 for planned upgrades to the main home.
At this point, over $400,000 was invested in the property.
Images of the guest home showed only framing completed by the fall of 2023, with the main home a little further along.
ENOUGH IS ENOUGH
In December of that year, Settlers West Home Builder filed for bankruptcy, and the couple filed the lawsuit soon after.
At least 18 other complaints were filed against the LLC before its license was revoked by the Registrar of Contractors in February 2024.
The result of the lawsuit remains unclear, but the couple would have to put in at least another $400,00 with a different contractor to complete the guest and main home.
Matthews said she is “hoping that our mistake would become someone else’s fortune on not making these mistakes.”
The Carranza brothers’ attorney could not be reached for comment.
Some Americans have also lost thousands to nasty property scams.
A couple recently watched $15,000 from their savings vanish after purchasing a house that wasn’t even for sale.
Another woman’s “whole world fell apart” after $255,000 disappeared after a single email while buying a new home.
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