Storm victims across metro Atlanta will soon receive demands to come up with thousands of dollars for new roofs for which they had already paid in full.
A contractor received the insurance money but the shingle supplier didn't.
Lithonia homeowner Dan Reeves said when he received the lien, it felt "like someone stabbed me with a knife. I had never even heard of Division 7," he said.
Their attorney said Division 7 Supply supplied shingles to 50 customers of Atlroof.com. Many of the clients were storm victims. Now, those homeowners are facing liens and lawsuits which demand payment plus 7 percent interest.
Atlroof.com closed the doors without paying the supplier.
"We supplied the material onto their homes, and we have not been paid for the material. So our only recourse to reclaim the money is against the homeowner," said Division 7 co-owner Ana Muratori.
The roofer's bankruptcy filing said it owes Division 7 more than $230,000. Reeves said the supplier gave easy credit when they should have given an ultimatum.
"You owe us this money, and we're not going to extend you credit until you pay us. That's the way a responsible business would act," he said.
"Why did you extend them credit?" asked Strickland of the owner.
"I am not at liberty to disclose any of that information," Muratori said.
Her attorney said dozens of the lawsuits have yet to be filed. Reeves said he's getting a lawyer too.
"We're going to lose but, we're going to fight it," he said, rather than pay more than $3,200.
A Cobb County victim told Strickland he paid more than $10,000 to clear the lien on his home.
Legal sources said they should have demanded the roofer sign an affidavit swearing the suppliers and subs were paid and a waiver to clear any liens.