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Anything else to try to collect payment without costly litigation?

ColoradoLawsuitLien ForeclosureRecovery Options

Filed a mechanics lien on a construction project. No payment. Send a notice of intent to foreclose and the mail delivery service is pending for two weeks now. The last day on the project was Jul so should have til end Dec to enforce? Any other means to try to collect payment without the costly litigation?

1 reply

Nov 27, 2019
If a property owner (or other party) is not moved to pay the amounts due after a lien claim has been filed, and an intent to foreclose document has been sent, it may be difficult to shake payment loose from them without initiating a lawsuit. But there may be other possibilities, as well. A more formal demand letter could be sent from an attorney with more detail related to the amount due and the potential consequences if payment is not made. While a notice foreclosure should inform the property owner that an action to enforce the lien can result in the foreclosure of and loss of the property at issue, it can potentially be made more clear through an attorney demand letter. Additionally, some people respond more to the presumed authority of having an attorney say a lawsuit is imminent, rather than the aggrieved party saying the same thing. Outside collections can also be an option. For parties who don't want to deal with the time, expense, and effort of a lawsuit (at least at first) it may be worth considering sending the project to an outside collections firm. This type of approach doesn't work for everybody, but it provides another option for collection without as much work required. Finally, you can just bite the bullet and initiate an action to enforce the lien. How much work, time, and effort you want to put into that suit is up to you and your lawyer - but it may be that actually initiating the suit and serving the property owners is what it takes to get their full attention and get you paid.
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