Is a lien only for money owed or.........
11 years ago
last modified: 11 years ago
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mechanic's lien
Comments (8)Your attorney is advising you to pay the sub to remove the lien, then sue the GC to collect what you are owe. This is the most sensible approach. Not sure how lien laws are written in your state, but in mine, a lienholder can actually force the sale of the house in a Sheriff Sale to satisfy the lien amount. But since the sub is not the primary lienholder against the property (your mortgage lender is) this can end up like a "foreclosure" with the bank ending up owning your house and land. It is therefore in your best interest to resolve this issue quickly. Your builder does not have your best interest in mind at this point, but rather his. So do what you need to do to protect yours. Luck...See MoreLiens on the build
Comments (8)I have since learned about the tiff the two have. Lumberman had a salesperson who didn't get a bunch of doors and trim work to the Cabinet Guy when CG was a general contractor. CG wasn't paid for the job, because he couldn't get it done in time for the big party of his client. So, he didn't pay Lumberman. He said he has wanted to, after his initial irritation, but "just hasn't gotten around to it". They actually didn't speak to each other at my house, but it sure was cold when they were both there. Cabinet Guy has been buying his supplies elsewhere since the non-payment. I get a lien release every time I give checks out for the amount of the check. I get an invoice from each of the various subs, one from Lumberman, one from Cabinet Guy, one from Electrician, etc. Then I take those to the attorney who is the go-between from me and my bank, who holds my construction loan. He alerts the bank to transfer money and come out and do an inspection. Once that is done, he writes the checks and I pick them up and hand them out. Is this the way everyone does it? BTW, I am the GC, not a builder....See MoreTax lien on title- now what?
Comments (26)beachlily, that is not true regarding the renter and a federal tax lien. The IRS does not get any kind of preference because of an income tax lien (other then once they file, very few lien holders that file after them can jump in front of them), even it was the result of a fraudulent filing. They have to go through the same foreclosure proceedings as any other creditor. If the partner truly had a part in the tax fraud I can assure you he would be in jail. The IRS does not simply slap you on the hand and say "pay me when you can and don't do it again" when the numbers get into the six figure range. What you are referring to is an asset seizure in which the police will take all property they think is linked or obtained from the commission of a crime that allows for asset seizures (usually drug trafficking, theft by deception, etc). Chances are if you are renting a property with a meth lab being run out of the basement, you may lose your property. Typically they will take everything on the premises and then let the owners sort it out. And in this case, it can be very hard to get your property back since the laws typically require them to give back the property only if you are found innocent. To get around this requirement, they simply do not file criminal charges against you. Many times the only way you get your property back is to get them to charge you with a crime....See MoreContractor holdback and lien releases?
Comments (7)I can't thank you enough for these responses! weissman--Thank you for confirming what I thought: the contractor holdback is typically a percent of value for the entire job. And yes, momtotwinboys, I am very unsure how I'm supposed to know who all to request a lien release from?? I was thinking the same thing that I know the "big" subs--plumbing/electrical/HVAC/drywall etc-- but surely there are other folks too and what if one of these guys have "sub subs" and what if they come later saying they haven't been paid? tracie.erin-thank you for sharing the process for BofA releasing your funds, that was very helpful. It's easier when the bank is the "bad" guy requiring the holdback and lien releases and removes you from having to negotiate anything with the contractor. I've read to tie payments to milestones-our contractor intends to bill monthly for work that has been completed and really pushed back at the idea that I would hold back 10-15% of that because the work would be complete and he would be owed this. (and momtotwinboys-I couldn't imagine negotiating with our contractor that he'd receive his final 7.5% of the job 30 days after completion. How did you swing that?) I worry if I just try to just hold back something out of a final payment,it won't be enough of an incentive to keep him on the job if anything goes wrong...? Can anyone else offer feedback about what your lender requires and/or what you've negotiated with your contractor about the holdback? I'm learning a lot-thank you!...See More- 11 years agolast modified: 11 years ago
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