Filed A Lien

Mr. D

a contractor owes me 12k. since december. i filed a lien. but i 'm not sure how that will get me paid. contractor doesn't seem to care.

Patrick

file a lien on the homeowners house if you can

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

Chris Johnson

The lien is a good start, check with the state for their requirements, usually at some point you need to perfect the lien to keep it in good standing.

Did you notify

A) The Contractor
B) The Owner
C) The Bank holding the mortgage
D) Any and all suppliers you had supply the project (Usually they will lien with you as well, plus they have deeper pockets then you making it a little cheaper to fight for this since you are a smart guy and will go with their lawyer keeping your out of pocket expenses down since one lawyer is doing the work as opposed to two different lawyers doing the same job costing you unnecessary money you still don't have) Whew!!

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Chris

Double-A

Mr.D, I sent a PM with this link in it. I just wanted to be sure you had it.

It seems MI has some sort of fund set up that helps protect homeowners, suppliers and subcontractors from non-paying contractors. Interesting.

I didn't read over the whole thing, and I only know what the article says, so good luck with it.

Consumer’s Guide to the Michigan Construction Lien Act & The Homeowner Construction Lien Recovery Fund

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Mr. D

Thank you Double-A. I'll start reading that in a few minutes.

Grumpy

The lien will prevetn sale of property or a refinance from occuring. It may also play a part in their other credit as well, for example buying a car (though car dealers will give anyone a car with enough down payment and hope you get repo-ed.)

Once a lien has been properly filed, you can then foreclose on the lien, or in other words "seek judgement" to be paid. Even if you seek and win judgement you may still not be paid until you again file and win in which case the state/county what ever may sieze the property and auction it off to pay you.

That's basically how it works in theory. I've never not been paid once I filed the lien. I have never had to seek judgenent. However I have not been paid when I have not filed the lien.

If the contractor is not paying you, go after the property owner. They will put the screws on the contractor to pay you or pay you directly.

kevjob

here we have to intent to lien letter 10 days in advance then lien the homeowners house usually the intent to lien is sufficient to light a fire under everyone. good luck keep up with the lien and don't give up.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

Ed the Roofer

Mr. D.,

I read through the link that Double-A posted and it would help you tremendously to know the proper requirements of your state of Michigan to ensure that you followed all of the procedures correctly.

A Mechanics Lien can be a strong tool, usually best served by the threat alone, and then following byn the actual recording of the lien.

The Lien is on the property and not on the actual builder/homeowner, even though they are the named parties.

It can and will cloud the title to the property and it is most beneficial during new construction prior to title being transfered.

A lien can be bonded over, minimizing its immediate effect by the party being liened.

In Illinois, and probably elsewhere, but check to be certain, the liened party can file for the lein suit to be immediately brought forth in a court of law, and if not done in a certain very limited time frame, the lien will automatically be dismissed.

Improper notices, sworn statements, and even the lack of having the lien notorized can be justification to challenge and defeat the lien.

The next step after filing the lien, is to bring forth suit to enforce the lien.

Another option, depending on the dollar amount restrictions, is to file suit, not related to the lien process, but for the breach of payment terms in the contract, in small claims court. This can usually be a less costly method of pursuing your legal actions against the other party.

An important clause to have in your contract is to be reimbursed by the other party for any and all legal fees, court costs, and any other related collection expenses related to attempting to colloect the funds rightfully due to you.

The other side can still counter sue you, usually stating that your work was either incomplete or not to contractual standards specified, and then the legal fees go up for both parties.

If the contractor/homeowner is not intimidated by the fact that a lien was filed, then a meeting with an attorney who properly understands construction and contract law should be made to explore the necessary legal steps which must be undertaken according to very strict timetables.

Now, you must seek out an attorney and follow through with your actions and not let procrastination rear its ugly head and del;ay things to the point of no return and find out that you missed out on your rightful and legal opportunity to collect the funds due to you.

Keep track of all pertinent written and verbal communications in extreme detail.

Have the original contract and any signed or otherwise authorized change orders ready and organized for your attorney to review.

Organize all of the daily job progress photos and end of job completion photos that you may have and if you did not do so, get as many post job photos that clearly identify the work and workmanship that you supplied.

Learn and fully understand the legal process from the beginning, so that you can contribute to a successful outcome for yourself. Your attorney can only do as good of a job as the evidence that you can provide to best justify your position.

Ed

Mr. D

Thanks for all of your great replies guys. I filed the lien a month ago. I've got a good lawyer who also happens to be a licensed builder. He's been walking me through the steps. Real blunt and to the point. I know he's doing right by me. I just feel like I could ask him questions all day. And for his hourly fee, I try to keep my questions to a minimum.

Talking with you all is helping me deal a little easier. I've got a meeting with him in the morning, turns out a partial payment has been recieved at his office this afternoon.

My first time in this particular situation. I've been in business five years now. Always something new to learn to deal with. Thankfully I've been able to keep my bases covered so to speak. These firsts are always so nerve-wracking ya know.