• Tweet
• Share
• Email
• Print

RACINE COUNTY - People in Racine County are getting unsettling news as they settle into their new homes. Builder Neumann Homes plans to file for Bankruptcy and homeowners say unpaid subcontractors are trying to collect money by putting liens on homes. The doors to the sales center where people bought their Neumann homes have been locked all week because the company is filing for bankruptcy. That means people who bought houses here are getting a raw deal. Lynn Michelau felt great about her new house four months ago. “Everything was great,” Michelau said. "They have a great big grand opening and celebration for you when you move in. They put a big red carpet and everything for you,” Michelau said. However, things quickly went bad. A few months after her closing, Michelau found out the drywall contractor put a lien on her house because she says the builder, Neumann Homes, didn't pay an $8,000 drywall bill. People across Sturtevant’s Chicory Creek Subdivision are in the same situation. “Everything is great except this whole bankruptcy thing,” neighbor Dina Wood said. Wood has two liens on her Neumann home. “As far as I know, I already paid for this home already. And I shouldn't have to pay subcontractors that I never even dealt with,” Wood said. So what can these people do? TODAY’S TMJ4 asked a Racine real estate attorney for answers. “If the lien is properly filed and title insurance doesn't cover it, then you're stuck," Attorney Dan Pettit said. “I think your recourse at that time is to make a claim in bankruptcy court and most of the time you're getting pennies on a dollar if you're lucky,” Pettit said. In some cases, title insurance will cover a homeowner. Before paying off a lien, a homeowner should check with their title company. Also, Attorney Pettit said that unless a builder can show proof that all of the construction bills have been paid, no one should ever close on a house. Neumann Homes also has two subdivisions in Kenosha County.