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Sorry to hear of your misfortunes. The bank is at fault for advancing the funds. However, in many states (I do not know where you are at), it is the home owner that is ultimately responsible for paying the subs. If he keeps the HVAC and plumbers money, it is possible they could file a lien on you and your property. He should have 24 hours to return the money. I just happen to work in the construction financing field. Unfortunately, even in the most stringent/regulated banks, these things occasionally happen, whether it be a unattentive draw coordinator or what. I have never seen the case (at three institutions over 15 years) where the builder voluntarily returned the money. EVEN THE SMART AND OTHERWISE TRUSTWORTHY ONES. I think the mentality is either: 1) Hey, the bank did something wrong and I cannot figure it out. I'll just sit on the money until they get it straight then give it back.; or, 2) Hey, they sent too much money. This must be like that time they forgot to process that check I wrote to Wal-Mart and it never got deducted. Its their loss and my windfall, good beer tonight.
;or (honestly believe to be the most common),
3) This is weird, the draw doesn't seem right. Well, they have strange calculations, a relationship with the borrower outside of me, and professionals overseeing these draws. Maybe they are catching up on something I missed earlier or have made some arrangement with the borrower. Hopefully, he'll step up to the plate. Not much worse than having to lose a builder half-way through. As far as the steps go, I would find out where they came from, call and see if his account was credited for the return. Use this as ammunition, either: 1) Hey you messed up, they credited you for the steps.; or 2) Now I know your a thief, you never returned the steps, just what job or personal home improvement project DID you use them for. Sometimes, the contract will have a surcharge for change orders. So either build the case for him ordering the wrong items or be prepared for a change order charge.
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