Funding Contractor Claims Against Homeowners

You finished the kitchen, the addition, or the roof. The homeowner stopped answering, disputed the last draw, or said they’d pay “when they can.” Claims against homeowners are personal and uncomfortable, and they can still be worth tens of thousands of dollars.

This page covers how contractor claims against individual homeowners usually work in Colorado, where the lien rules have some special homeowner protections, and how Darkwell can help carry the cost of pursuing a claim of $10,000 or more.

Quick note: Darkwell funds legal claims. We’re not a law firm and this isn’t legal advice. Talk with a licensed attorney in your state about your claim and your deadlines. Lien and notice deadlines are strict, especially on homes.

Homeowner owes you $10,000 or more for finished work? Request a free claim review.

Colorado rules that matter on a home project

Notice of intent first. Before recording a lien statement, a notice of intent to file must be served at least ten days before the lien statement is recorded (C.R.S. § 38-22-109).
Lien statement deadline. For most claimants, the lien statement must be recorded within four months after the last labor or materials were furnished (C.R.S. § 38-22-109). Shorter periods apply in some situations.
Suit within six months. An action to foreclose the lien generally must be started, with a notice of the suit recorded, within six months after the last work or materials (C.R.S. § 38-22-110).
Homeowners who already paid. On an existing single-family home, and on certain owner-occupied homes, Colorado gives the owner an affirmative defense to a lien if the owner has paid the full contract amount, including change orders, to the principal contractor (C.R.S. § 38-22-102(3.5)). If you worked for a GC who didn’t pay you, the homeowner’s payment can matter.
Court limits. Colorado small claims court hears claims up to $7,500 (C.R.S. § 13-6-403), and county court hears civil cases up to $25,000 (C.R.S. § 13-6-104). Larger claims go to district court.

Chart: Colorado deadlines and rules for a contractor claim against a homeowner, from notice of intent and lien statement to the six-month suit deadline and court limits

Why homeowner claims stall

Punch-list and quality disputes. The homeowner points to unfinished items or defects to avoid the final payment.
Change orders done on a handshake. Extra work was approved verbally and now isn’t. See no written contract and quantum meruit.
Insurance money that never reaches you. Common on roofing and storm work. See unpaid roofing insurance claims.
The cost of fighting. A contractor owed $40,000 may not want to spend months and legal fees chasing one customer.

Lien, contract claim, or both

A mechanic’s lien ties the debt to the property. A contract claim goes after the person who owes you. Many contractors pursue both, and the lien deadlines run fast. If a deadline has already passed, the contract claim may still be open. Colorado generally allows three years for contract actions (C.R.S. § 13-80-101). See what to do when a lien has expired.

How funding works when the debtor is a homeowner

When the person who owes you is an individual homeowner, Darkwell funds your claim under a written funding agreement. We do not buy the homeowner’s debt and we do not collect it. Your attorney pursues the claim, and our funding is repaid only from a recovery.

How Darkwell helps

Legal costs are often what stops a good claim. Darkwell helps carry them. For a claim against a homeowner, that can mean funding the notices, lien work, and litigation it takes to get paid.

We help carry the cost. Darkwell funding helps pay for the case, so your operating cash stays in your business.
We bring attorneys we know. Darkwell has a network of attorneys we know. They help keep costs down while still pursuing the claim. The claim moves forward with an attorney from our network, or your current attorney where it fits.
Your attorney handles the law. We don’t run your case or choose your legal strategy. Your attorney does that.
You make a clear decision. The goal is to take the stress out of the fight and make the smart financial decision about your claim.

What to send for a claim review

Your contract or estimate, and any signed change orders
Invoices, draw requests, and payment history
Photos of the finished work and any inspection sign-offs
Texts and emails about the dispute
Any notice of intent, lien statement, or court filing so far
The property address and your last day of work

How we get paid

Our fee comes out of the recovery, not your pocket. If there’s no recovery, you don’t repay our funding. Your written agreement sets the exact terms.

Where we work and claim size

For business claims, we fund in many U.S. states, reviewed state by state, where champerty rules and litigation funding laws allow our model. We confirm your state during review. See where Darkwell funds claims.

For individual homeowners, we focus on Colorado claims; other states are reviewed case by case where the law allows.

We review claims of $10,000 or more, subject to review and approval by our team.

Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado.

Common questions

Can I put a lien on a homeowner’s house in Colorado? Often, if you meet the notice and timing rules. A homeowner who already paid the general contractor may have a defense to a subcontractor’s lien. Your attorney can confirm what applies.

The homeowner says my work is defective. Can I still get funding? Possibly. Disputes about quality are common. We look at the documents, the photos, and the amount at stake.

Does Darkwell buy the homeowner’s debt? No. For homeowner claims, Darkwell funds the claim under a written agreement. We don’t buy or collect the debt.

Do you fund homeowner claims outside Colorado? For claims against individual homeowners, we focus on Colorado projects; other states are reviewed case by case where the law allows.

Who runs the case? Your attorney. Darkwell provides funding and does not control the case.

Sources

Reminder: Darkwell provides litigation funding. Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado. We are not a law firm and do not give legal advice. Colorado law controls Colorado claims and deadlines. Nothing on this page promises funding, approval, or any particular result.

Homeowner won’t pay for work you finished? Request a free claim review. Send what you have, and you’ll get a response from our team.