In 2002, the Phipps began construction on their “dream home”, a modest retirement home on land they had purchased years before. The couple had planned this for over twenty years and was excited to move on to a new phase of their lives after raising their children. Alice planned to end her long nursing career working for the small local hospital; Bob was easing into part time work as an insurance adjuster, a typical middle income working couple.

Being unfamiliar with the area, the Phipps asked around and picked a local contractor. He in turn recommended a mortgage lender with whom he had “a good working relationship.” Thus began a nightmare that continues to this day.
When it came time to close into permanent financing, the contractor demanded approximately $24,000 more than he was due.

Although he had no basis for affecting the closing, the lender refused to close and sent the Phipps an unnecessary request for a “lien release.” In the next 6-8 months, the Phipps discovered numerous building deficiencies, code violations, unpaid sub-contractors and more. It became obvious the lender was involved in serious mishandling of the construction funds. The lender made it impossible to close on or pay for the house, eventually attempting to foreclose on a construction loan they themselves had ruined.

The fiasco has cost the Phipps approximately a half million dollars, a sum beyond their ability to pay. Step by painful step, the Phipps have wrestled their home from the control of the lender. They had to counter sue and that suit that is still ongoing. The Phipps won a major victory against the builder before the TRCC who ruled in their favor. However, because the commission has so little authority, it will not and cannot enforce their ruling.

The Phipps have survived only by canceling their retirement plans and taking on additional work loads. There is no way for them to fully recover from this ordeal.