Nobody likes a run down property in a neighborhood.
That's why when homes are foreclosed on, banks have to keep up the properties until new owners are found.
Those house-keeping duties are subcontracted out... and one Arkansas subcontractor says he isn't getting paid.
David Spillers says his problem isn't with the banks. His problem is with one of the companies the banks pay to find and hire people like him
The final chapter for the home at 47 Brookview in Little Rock has yet to be written...but end won't be a happy one.
It is in bad shape. Foreclosed on years ago, it fell back to the lender...LPS, or Lender Processing Services.
Spillers was at one time keeping the property up for LPS.
"I've had a lot of neighbors come to me in disgust because they have places like this and they would like to sell their home," says Spillers. "Or like this lady here...she's got a nice place. And you've got something like this tearing the whole neighborhood down."
Spiller's Hot Springs company...S and S Landscaping and Construction...at one time helped keep up properties in 45 Arkansas counties.
Spillers worked not for the banks that owned the homes, but for Mid Ohio Field Services.
Mid Ohio helps banks maintain properties in 15 states, including Arkansas.
Mortgage lenders like Wells Fargo, Bank of America, Core Logic and LPS are among those who pay Mid Ohio, who then in turn find and pay crews in the various states...crews led by men like Spillers.
The problem is...Spillers says Mid Ohio doesn't pay.
Or if payment is made, it is not payment in full.
"After you do it and you've spent several hundred dollars in equipment...parts, pieces, employees and what not...then they'll come back and say, well, these pictures really don't justify that you did the whole job," says Spillers. "We can't pay you anything. You're claiming that the bank is not paying you so you can't in turn pay me. I can understand that. But show me. They won't show."
Like Spillers, we have been unable to get any answers from Mid Ohio Field Services.
Spillers says other contractors like him have similar complaints and a class action lawsuit will be filed next week.
Air date: July 26th, 2013
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