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Liens are working, but how do you release them?

Discussion in 'Lawn Mowing' started by Can I Mow Your Lawn?, Mar 26, 2007.

  1. Can I Mow Your Lawn?

    Can I Mow Your Lawn? LawnSite Member
    Messages: 35

    Last summer a lady stiffed us on a st augustine sod installation. After giving her every chance in the world to pay, we realized we were getting stiffed and filed a lien on the property.

    She called this weekend and left a voice mail. She is selling the house. The title company called this morning as well. They are set to close in 2 days.

    We have never actually done this before, so, after they pay us, how do we release the lien? We were thinking we would just send a letter on company letterhead to the title company stating that she had paid in full and the lien was satisfied, but is that how it works? Does the title company then make the lien go away or do we have to do something with the county to make the lien dissapear?

    I can't imagine the mortgage company would let the buyer buy the house if the lien still existed, so does the title company make it go away after they know it's been satisfied?

    Thanks for any and all help,
    Can I Mow Your Lawn?
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Man I'm just glad it works, but first place I would check is with the clerk or the authorities where you filed the paperwork to begin with, that would be my first stopping point. It still amazes me, how suddenly they remember and find the money sometimes lol.
  3. Can I Mow Your Lawn?

    Can I Mow Your Lawn? LawnSite Member
    Messages: 35

    If the seller doesn't have the cash to satisfy the lien, I GUESS (and it's a total guess) that they'll allow the sale, only the selling price drops by the amount of the lien and the title company cuts a check to the lien holder????

    In other words:

    Existing mortgage = $100,000
    Landscaper's lien = $1,000

    Sales price = $150,000

    In this instance, the buyer pays $150,000 for the home to the title company. The title company give the seller $49,000 and sends $100,000 to the seller's morgage company and $1,000 to the landscaper.

    I assume that's how it would work.

    How else would the seller get their home equity out if they don't have cash to satisfy a lien?

    Can I Mow Your Lawn?
  4. ProStreetCamaro

    ProStreetCamaro LawnSite Platinum Member
    Messages: 4,289

    They were in no hurry to pay you so you shouldnt be in any hurry to clear the lien in my oppinion. Maybe it will teach them not to screw people.
  5. Can I Mow Your Lawn?

    Can I Mow Your Lawn? LawnSite Member
    Messages: 35

    If I screw their closing, they could have serious damages.

    Can I Mow Your Lawn?
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    I would just be glad I got my $$$$$$ and get out!
  7. Pro-Scapes

    Pro-Scapes LawnSite Platinum Member
    Messages: 4,180

    the title company will work with you on this. You have to sign a form releasing intrest in the property. Just like a bank must do it when they have a financial intrest in a property they are the 1st lienholder until the motage is satisfied.

    In this case you could be 1st if the house is paid for outright...2nd if no one else has a lien... 3rd or 4th or so on. All liens must be satisfied before the home can change owners. Dont drag your feet on this. Do it quickly and professionally. It says more about your company that dragging your feet and getting "revenge" Get paid and be gone.
  8. gandk06

    gandk06 LawnSite Senior Member
    Messages: 509

    I used to be on the board of a HOA and had to place liens on several properties for not paying yearly dues. It was always the homeowners responsibilty (leagally) to have the lien removed before the property could be sold. We never had to do anything additional other than sign off that it was payed.
  9. Scagguy

    Scagguy LawnSite Bronze Member
    Messages: 1,522

    PM me with your phone number and I'll explain how the process works. I was a mortgage broker for a number of years before getting into the green industry.
  10. gene gls

    gene gls LawnSite Gold Member
    Messages: 3,213

    The lawyer handling the closing will take care of it. I worked on a forclosure property this spring and it took 90 days to get paid. Lots of hands passing the paper work around.

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