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View Full Version : Mechanic's Lien ; Foreclosed Property?


MOturkey
09-13-2009, 09:07 PM
Anyone have a mechanic's lien on a propety that eventually ends up as a foreclosure? I filed one to the tune of $875 on a property up the road from us, probably a year and a half ago. Gal skipped out to California, and the placed ended up with the bank.

A few weeks ago, I saw some people up there, apparently doing some work, so I stopped and asked if they were purchasing the house. They said, yes, subject to their loan gong through. They were doing some repairs before the appraiser looked at the place. I gave them a card and told them I had mowed the place for 4 years, and if they needed someone to mow, give me a call. I didn't mention the lien. The lady told me they hoped to close about the middle of September, if their financing went through OK.

Well, today, someone was there mowing and cleaning up the place, which makes me believe it is a done deal. I have not heard anything regarding my lien. I didn't know how these were handled. Is this done at closing? I had assumed the lien would have to be paid before selling the property, but perhaps not. Don't have a clue what bank has the place, but I do have the number of the realty company that had it listed. I'm assuming the buyers went through them.

Do you think I should call the realty company and ask them about it, or try to find out the bank that has the property, and contact them, or just wait and see what happens? Thanks.

cpel2004
09-13-2009, 09:16 PM
Do a google search, from my understanding there are strict guidelines you must follow for the lien to be valid.

MOturkey
09-13-2009, 11:19 PM
Do a google search, from my understanding there are strict guidelines you must follow for the lien to be valid.

I think you are right. I looked up the requirements for MO, and apparently you must give the owner a notice saying you will file a lien if they don't pay their bill before the work is done, so I suspect I might as well kiss the money good-bye.

Funny, though, the Circuit Clerk didn't mention any of this, and nothing was said in the papers I filled out when filing the lien. Guess they just want to get the $5 filing fee. :rolleyes:

Think Green
09-13-2009, 11:39 PM
Neil,
I don't have too many of these situations to conclude on, but a last year we had a customer that moved out of state. They paid for 4 months in advance, but the remainder of 3 months wasn't recovered. These were fall cleanup costs....more expensive than normal mowing service. There must be a formal letter from your attorney and it has to be submitted to the person by certified mail. The way i was told, is that if it was this easy, everyone would be putting lein's on anyone who makes them mad or not pays. There are legalities and fees to start the proceedures.
I do know that if properties enter into the Bankruptcy system, your money is good as gone. We had 3,000 worth of assets bankrupted last year.............oh well!!
Once a Lein goes into the legal process, a properties title isn't clear, and all withholdings must be cleared upon signing of the papers. My property on our newly purchased foreclosed home went through asset collection processes from the previous owners before we could close on the property.

Sometimes with properties that go into foreclosure, the new lender doesn't know all that is in control of the property until the final closing procedures. The courthouse records will show any leins placed on the property at the onset of legal representation. The process takes a little while though, and that is why legal representation can get it done a little quicker. Often, when the homes go into foreclosure, the new lender will be eager to liquidate the asset quickly to regain their loss. Our new home had some hooks and claws to go around as well. So, if the procedure went through the right connections legally, the lein will show up in records, and will bite the new lender in the butt. The cost will have to paid if they want to sell the home.

TimTim2008
09-14-2009, 01:50 AM
You can forclose it too. but inorder to take ownership, you have to buy the other liens too

topsites
09-14-2009, 01:51 AM
Funny, though, the Circuit Clerk didn't mention any of this, and nothing was said in the papers I filled out when filing the lien. Guess they just want to get the $5 filing fee. :rolleyes:

No, they don't care, but around my neck the fee's closer to $40...
And you need a judgment first.

Why I ain't never filed one :p

Anyhow...
In the end I look at it this way, those folks lost their home...
Doesn't quite put the money in my pocket, but ...

PROCUT1
09-14-2009, 08:47 AM
Basically when a house goes into foreclosure it depends how much they get for it.

The first mortgage company is usually the one that forecloses and sells the house.

They have first priority for the sale proceeds. If the house sells for more than the amount that is owed the first bank, then the second mortgage, third, secured creditors, and contractor liens get paid from that.

Usually you are so far down on the list you get nothing.

And its rare for a house to sell for as much or more than the first mortgage. House values are the main reason these are going pork to begin with.

ElephantNest
09-14-2009, 09:58 AM
Here in La. we just have to go to a notary and pay $35,then file it at the court house, for another $35, and you are done.

cpel2004
09-14-2009, 05:48 PM
Every state has their own laws. I would advise you to research your state laws. You don't need an attorney either. If you have never placed a lien before then I would highly advise you to use an attorney. Keep in mind you can re coupe the cost for your counselor fees.