Dream home ordeal left Florida homeowner out an extra $150K — but he says can't celebrate builder's arrest
But all he got from Mark Montalto of Port St. Lucie Properties was an empty lot and a $19,000 lien from a landscaping company that said Montalto never paid them.
'It's been traumatic, to say the least,' Alvarado told WPTV.
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast)
Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)
Alvarado not only had to pay off the lien but hire a new builder — all while suing Montalto. Between the lien, legal fees, rental housing and the new contractor, he says he spent $150,000 extra.
'It's just gut-wrenching,' he said. 'I know people know what I'm referring to when you feel that pit in your stomach. It's just hollow.'
WPTV reports that Alvarado is one of at least 19 people who have filed suits against Montalto in St. Lucie Court.
In April, the builder was arrested for construction fraud, including 17 charges of grand theft and four counts of theft from people 65 and older.
If convicted, Montalto, 61, could be sentenced to over 100 years in jail. But Alvarado fears the builder's victims will never get their money back; Montalto filed for bankruptcy last month.
Dorothy Calixte and her husband are among those suing Montalto. She told WPRV they had to pay $90,000 in liens to finish their dream home and take out a mortgage at a higher rate.
She also had to get a second job to pay down the debt.
'You shouldn't have to live like that, and you don't even have time to enjoy the dream home that you wanted,' she said.
Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis
There is some recourse for homeowners like Alvarado and Calixte who are trying to recover money they lost to builders who don't fulfill their contracts and have declared bankruptcy. One option is the Florida Construction Industry Recovery Fund.
The maximum award a Florida homeowner can recover from this fund has traditionally been $50,000 per claim.
But that's just been raised to $100,000 for claims on homebuilding contracts signed after Jan. 1, 2025.
There's no foolproof way to prevent contractor fraud — but you can take several steps to lower your risk:
Research the contractor's background. Look up licensing status and check for complaints or lawsuits on your state's contractor licensing board and county court websites.
Get everything in writing. A clear, detailed contract can help protect you if something goes wrong.
Request lien waivers. This helps ensure subcontractors are paid and reduces the chance they'll file liens against your property.
Watch for red flags. Frequent delays, evasive answers about payments, and requests for large upfront deposits can all be signs of trouble.
If you find yourself in a similar situation, taking action is crucial to protecting yourself. While laws and regulations vary by jurisdiction, here are a few steps to consider:
File a complaint with the state licensing board and your local consumer protection office.
Dispute wrongful liens in court if you believe they're invalid or were filed in error.
Hire an attorney to explore your legal options, including suing the builder or filing a claim in bankruptcy court.
Apply to your state's Contractor Recovery Fund (also known as a Homeowner's Recovery Fund) if the contractor was licensed and your case qualifies.
For Alvarado and others like him, justice may still be far off. But the arrest of Montalto is, at the very least, a step in the right direction.
'Thank God,' said Calixte, after learning of Montalto's arrest. 'That's all I ask for. At this point, I need justice.'
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Associated Press
38 minutes ago
- Associated Press
NFL on the verge of selling media assets to ESPN for an equity stake in the network, AP sources say
The NFL and ESPN are expected to announce an agreement next week under which most of the league's significant media holdings would go to the sports network. People familiar with the transaction said the multibillion-dollar deal would give the NFL an equity stake in ESPN. The people spoke to The Associated Press on condition of anonymity because the deal has not been finalized. It was first reported by The Athletic. The NFL and ESPN had no comment. The NFL has been trying to sell its media properties for nearly five years. ESPN and the league have been involved in on-again, off-again talks for the past three years. The proposed move comes as ESPN is expected to soon launch its direct-to-consumer service, possibly before the end of August. The service would give cord cutters access to all of ESPN's programs and networks for $29.99 per month. Most cable, satellite and viewers who have streaming services will receive the service for free as part of their subscription. ESPN would get access to the popular RedZone channel, as well as NFL Network and an additional seven regular-season games (six international and a Saturday afternoon late-season contest). A couple of weeks ago, ESPN announced that NFL Network host Rich Eisen's three-hour program would air on ESPN Radio as well as stream on Disney+ and ESPN+. 'The Rich Eisen Show' is not affiliated with NFL Network. ESPN has carried NFL games since 1987 and 'Monday Night Football' since 2006. Under the current TV contract, it will have the 2027 and 2031 Super Bowls for the first time. NFL Network started in November 2003 and was the second major pro league to have its own network. NBA TV started in 1999, MLB Network in 2009 and NHL Network in the United States in 2007.
Chicago Tribune
39 minutes ago
- Chicago Tribune
It's Trump's economy now. The latest financial numbers offer some warning signs.
WASHINGTON — For all of President Donald Trump's promises of an economic 'golden age,' a spate of weak indicators this week told a potentially worrisome story as the impacts of his policies are coming into focus. Job gains are dwindling. Inflation is ticking upward. Growth has slowed compared with last year. More than six months into his term, Trump's blitz of tariff hikes and his new tax and spending bill have remodeled America's trading, manufacturing, energy and tax systems to his own liking. He's eager to take credit for any wins that might occur and is hunting for someone else to blame if the financial situation starts to totter. But as of now, this is not the boom the Republican president promised, and his ability to blame his Democratic predecessor, Joe Biden, for any economic challenges has faded as the world economy hangs on his every word and social media post. When Friday's jobs report turned out to be decidedly bleak, Trump ignored the warnings in the data and fired the head of the agency that produces the monthly jobs figures. 'Important numbers like this must be fair and accurate, they can't be manipulated for political purposes,' Trump said on Truth Social, without offering evidence for his claim. 'The Economy is BOOMING.' It's possible that the disappointing numbers are growing pains from the rapid transformation caused by Trump and that stronger growth will return — or they may be a preview of even more disruption to come. Trump's aggressive use of tariffs, executive actions, spending cuts and tax code changes carries significant political risk if he is unable to deliver middle-class prosperity. The effects of his new tariffs are still several months away from rippling through the economy, right as many Trump allies in Congress will be campaigning in the midterm elections. 'Considering how early we are in his term, Trump's had an unusually big impact on the economy already,' said Alex Conant, a Republican strategist at Firehouse Strategies. 'The full inflationary impact of the tariffs won't be felt until 2026. Unfortunately for Republicans, that's also an election year.' The White House portrayed the blitz of trade frameworks leading up to Thursday's tariff announcement as proof of his negotiating prowess. The European Union, Japan, South Korea, the Philippines, Indonesia and other nations that the White House declined to name agreed that the U.S. could increase its tariffs on their goods without doing the same to American products. Trump simply set rates on other countries that lacked settlements. The costs of those tariffs — taxes paid on imports to the U.S. — will be most felt by many Americans in the form of higher prices, but to what extent remains uncertain. 'For the White House and their allies, a key part of managing the expectations and politics of the Trump economy is maintaining vigilance when it comes to public perceptions,' said Kevin Madden, a Republican strategist. Just 38% of adults approve of Trump's handling of the economy, according to a July poll by The Associated Press-NORC Center for Public Affairs. That's down from the end of Trump's first term when half of adults approved of his economic leadership. The White House paints a rosier image, seeing the economy emerging from a period of uncertainty after Trump's restructuring and repeating the economic gains seen in his first term before the pandemic struck. 'President Trump is implementing the very same policy mix of deregulation, fairer trade, and pro-growth tax cuts at an even bigger scale – as these policies take effect, the best is yet to come,' White House spokesman Kush Desai said. The economic numbers over the past week show the difficulties that Trump might face if the numbers continue on their current path: 'The economy's just kind of slogging forward,' said Guy Berger, senior fellow at the Burning Glass Institute, which studies employment trends. 'Yes, the unemployment rate's not going up, but we're adding very few jobs. The economy's been growing very slowly. It just looks like a 'meh' economy is continuing.' Trump has sought to pin the blame for any economic troubles on Federal Reserve Chair Jerome Powell, saying the Fed should cut its benchmark interest rates even though doing so could generate more inflation. Trump has publicly backed two Fed governors, Christoper Waller and Michelle Bowman, for voting for rate cuts at Wednesday's meeting. But their logic is not what the president wants to hear: They were worried, in part, about a slowing job market. But this is a major economic gamble being undertaken by Trump and those pushing for lower rates under the belief that mortgages will also become more affordable as a result and boost homebuying activity. His tariff policy has changed repeatedly over the last six months, with the latest import tax numbers serving as a substitute for what the president announced in April, which provoked a stock market sell-off. It might not be a simple one-time adjustment as some Fed board members and Trump administration officials argue. Of course, Trump can't say no one warned him about the possible consequences of his economic policies. Biden, then the outgoing president, did just that in a speech last December at the Brookings Institution, saying the cost of the tariffs would eventually hit American workers and businesses. 'He seems determined to impose steep, universal tariffs on all imported goods brought into this country on the mistaken belief that foreign countries will bear the cost of those tariffs rather than the American consumer,' Biden said. 'I believe this approach is a major mistake.'
Boston Globe
39 minutes ago
- Boston Globe
It's Trump's economy now. The latest financial numbers offer some warning signs.
But as of now, this is not the boom the Republican president promised, and his ability to blame his Democratic predecessor, Joe Biden, for any economic challenges has faded as the world economy hangs on his every word and social media post. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up When Friday's jobs report turned out to be decidedly bleak, Trump ignored the warnings in the data and fired the head of the agency that produces the monthly jobs figures. Advertisement 'Important numbers like this must be fair and accurate, they can't be manipulated for political purposes,' Trump said on Truth Social, without offering evidence for his claim. 'The Economy is BOOMING.' It's possible that the disappointing numbers are growing pains from the rapid transformation caused by Trump and that stronger growth will return — or they may be a preview of even more disruption to come. Trump's aggressive use of tariffs, executive actions, spending cuts and tax code changes carries significant political risk if he is unable to deliver middle-class prosperity. The effects of his new tariffs are still several months away from rippling through the economy, right as many Trump allies in Congress will be campaigning in the midterm elections. Advertisement 'Considering how early we are in his term, Trump's had an unusually big impact on the economy already,' said Alex Conant, a Republican strategist at Firehouse Strategies. 'The full inflationary impact of the tariffs won't be felt until 2026. Unfortunately for Republicans, that's also an election year.' The White House portrayed the blitz of trade frameworks leading up to Thursday's tariff announcement as proof of his negotiating prowess. The European Union, Japan, South Korea, the Philippines, Indonesia and other nations that the White House declined to name agreed that the U.S. could increase its tariffs on their goods without doing the same to American products. Trump simply set rates on other countries that lacked settlements. The costs of those tariffs — taxes paid on imports to the U.S. — will be most felt by many Americans in the form of higher prices, but to what extent remains uncertain. 'For the White House and their allies, a key part of managing the expectations and politics of the Trump economy is maintaining vigilance when it comes to public perceptions,' said Kevin Madden, a Republican strategist. Just 38% of adults approve of Trump's handling of the economy, according to a July poll by The Associated Press-NORC Center for Public Affairs. That's down from the end of Trump's first term when half of adults approved of his economic leadership. The White House paints a rosier image, seeing the economy emerging from a period of uncertainty after Trump's restructuring and repeating the economic gains seen in his first term before the pandemic struck. Advertisement 'President Trump is implementing the very same policy mix of deregulation, fairer trade, and pro-growth tax cuts at an even bigger scale – as these policies take effect, the best is yet to come,' White House spokesman Kush Desai said. The economic numbers over the past week show the difficulties that Trump might face if the numbers continue on their current path: Friday's jobs report showed that U.S. employers have shed 37,000 manufacturing jobs since Trump's tariff launch in April, undermining prior White House claims of a factory revival. Net hiring has plummeted over the past three months with job gains of just 73,000 in July, 14,000 in June and 19,000 in May — a combined 258,000 jobs lower than previously indicated. On average last year, the economy added 168,000 jobs a month. A Thursday inflation report showed that prices have risen 2.6% over the year that ended in June, an increase in the personal consumption expenditures price index from 2.2% in April. Prices of heavily imported items, such as appliances, furniture, and toys and games, jumped from May to June. On Wednesday, a report on gross domestic product — the broadest measure of the U.S. economy — showed that it grew at an annual rate of less than 1.3% during the first half of the year, down sharply from 2.8% growth last year. 'The economy's just kind of slogging forward,' said Guy Berger, senior fellow at the Burning Glass Institute, which studies employment trends. 'Yes, the unemployment rate's not going up, but we're adding very few jobs. The economy's been growing very slowly. It just looks like a 'meh' economy is continuing.' Trump has sought to pin the blame for any economic troubles on Federal Reserve Chair Jerome Powell, saying the Fed should cut its benchmark interest rates even though doing so could generate more inflation. Trump has publicly backed two Fed governors, Christoper Waller and Michelle Bowman, for voting for rate cuts at Wednesday's meeting. But their logic is not what the president wants to hear: They were worried, in part, about a slowing job market. But this is a major economic gamble being undertaken by Trump and those pushing for lower rates under the belief that mortgages will also become more affordable as a result and boost homebuying activity. His tariff policy has changed repeatedly over the last six months, with the latest import tax numbers serving as a substitute for what the president announced in April, which provoked a stock market sell-off. It might not be a simple one-time adjustment as some Fed board members and Trump administration officials argue. Advertisement Of course, Trump can't say no one warned him about the possible consequences of his economic policies. Biden, then the outgoing president, did just that in a speech last December at the Brookings Institution, saying the cost of the tariffs would eventually hit American workers and businesses. 'He seems determined to impose steep, universal tariffs on all imported goods brought into this country on the mistaken belief that foreign countries will bear the cost of those tariffs rather than the American consumer,' Biden said. 'I believe this approach is a major mistake.'
