HGTV’s Dream Home in the East Mountains of New Mexico has turned into a nightmare for its builder, Mark Roccaforte.

Roccaforte has placed a $310,000 lien on the $2-million-dollar home and is suing San Pedro Overlook’s developer Campbell Corp., as well as HGTV’s parent Scripps Networks, for that amount.

Roccaforte, a veteran builder of custom homes through his Cedar Crest, New Mexico-based Sonida Construction LLC, claims in a Sandoval County lawsuit that after receiving two payments totaling $500,000, he was not paid the balance for his work. He said he has paid all of the project’s subcontractors, including architect Amy Coburn, and used his own money recently to pay all those who worked on the project. The home, worth nearly $2 million on today’s market, contains 3,900 square feet, with stunning views and many sustainable features. The home is located at 87 Turquoise Drive in Sandia Park, in San Pedro Overlook’s second phase.

The popular cable-television show is available in 97 million homes nationally, and Knoxville, Tennessee-based HGTV crews have been filming in the home since October. The 2010 Dream Home show will start airing January 1, and the home will be given away March 15.

To register to win the home, viewers can go to hgtv.com/hgtv/dream_home/. The show’s crews also have been filming throughout New Mexico, and many real estate brokers hope it will give the residential business a needed national boost.

The liens are not likely to stop the show, although Campbell agreed to deliver a lien-free project to HGTV when the deal was announced earlier this year. HGTV could place a bond over the lien to allow the home to be given away.

HGTV’s producers and designers were highly complimentary of Roccaforte’s work.

A prepared statement from HGTV said, “HGTV is confident this business issue between the builder and the developer will be resolved quickly. We are thrilled with the 2010 Dream Home and are sure our viewers will enjoy learning about its fine Southwest architecture and design. In the meantime, we continue to value our great relationship we have both with the builder and developer of this beautiful home.”

Roccaforte claims he didn’t get paid despite finishing the accelerated project on time, on budget, and getting kudos from HGTV’s producers. Roccaforte said he sent three contracts to Robert Gately, CEO of Campbell Corp., who never signed them, and started the work with an oral contract. Roccaforte’s attorney, Karl Sommer, said oral contracts are valid in New Mexico and filed a breach of contract lawsuit to enforce it.

Roccaforte said HGTV provided the funding for the project, giving the money to Campbell, who sold the 3-acre lot to HGTV for $500,000. Campbell was then supposed to pay him.