You should consult immediately with your Attorney. This is a legal matter.
With regards to the 203k program and switching contractors, you should consult with your Lender, but in general it is very difficult to change contractors once you have closed on a 203k loan.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
You decision to release him when he has done 50% of the work is not an issue, since he is being released because he illegally performed work without a permit and you are an upstanding law abiding citizen who does not want to be a part of any criminal act. (That's what you tell the court).
This can be a minor or major issue based upon how it is handled and the reaction of the contractor. Call me to discuss. 914-299-0420. Call me at anytime. It is never too early or too late to discuss your business.