It does sound like he is using borrowing from Peter to pay Paul. Can an ordinary person do a credit check on someone else? I thought only companies could do that.

There are companies you can pay to do a credit and background check. You might need to have the contractor sign something giving you permission to do so.

Yes, as long as you have someone's permission (and you may also need some actual reason other than curiosity to do it), you can do it. My brother owns a couple of houses that he rents out, and he runs credit checks on tenants before signing the lease. So there's a reason--a business relationship, basically--and permission from the tenants, and voila.

It may also be possible to run a credit check on a company (like your GC's company), as opposed to on an individual, with or without permission. A google search could tell you more on that. And then of course there's the good old "google your GC, look him up on Angie's List and similar services, actually call his references," etc.

I 100% agree, and I wish I could make billboards with warnings to everyone. I have been through a horrible experience, which I've posted about a few times. If I would have researched just a little I would have prevented all of the heartache that our family has been through over the past 1 1/2 years. I could have searched public records even to see if he had any lien's or if his home was in foreclosure. Actually, just asking around town could have helped.

We have a new builder (whole house remodel) and my cabinets are being delivered Thursday, so things are better, but we ended up taking three times as long because of the first builder (I use that term loosely, more like scam artist).

I actually checked Angies' List and checked my GC's references. It just didn't occur to me to check his credit rating. But as I said, I might have found if I did that the recession was taking a heavy toll and that his financial position was too precarious to trust.

Live and learn.

i'm here to commiserate and second that! we have the same problem here. on month 29 of our new build. almost done, but man do i feel like an idiot.

this is our last home. the only way i'm leaving is in a box.
good luck melissastar. i can't wait to see your kitchen!

I just found out that the GC has been embezzling money from the cabinetmaker, who has retained a lawyer and expects to have charges pressed against him. Fortunately, I am (cross my fingers) days from being finished and all subs have said they're willing and able to finish on their own and be paid directly. Oy vey.

Many states have a searchable online database of court cases. A contractor with money issues may have already been sued, and if so you may be able to find the records in the court database. For example, in Oklahoma the searchable database is www.oscn.net (The Oklahoma State Courts Network). It's a free and easy way to do a little background checking.

Suzie

Get a release from your subs, so they can't put contractors leins on your home.

Our story....we did a substantial addition to our home about fifteen years ago. (That long?!!!) The day before we were supposed to close on our construction loan, our loan officer called and said our GC was in bankruptcy, and that they would not approve the loan if we used him, unless he could provide some kind of collateral info from his bank.

When I called him to ask, he went mental on me.

Our second choice scrambled to get a formal estimate put together within hours for the bank, and we were able to close as scheduled.

Boy, was I ever grateful that #1 had poor credit, and that our loan officer was watching out for us. Our addition went smooth as silk, our contractor was an absolute pleasure to work with, the addition is wonderful,he actually saved our home from burning down when he came back to install one last lightswitch cover, and discovered a bag of trash I had leaned against the garage was smouldering.