I am a realtor. My seller client has a personal loan through a third party bank for a furnace and air conditioning unit. He is now getting divorced and selling the house as a short sale. He has stopped making payments on the personal loan for the furnace and air conditioning. Can the bank that has that loan put a mechanics lien against this property? They are not the contractor. The contractor was a home warranty company that connected the seller with a loan company so they could finish the project. Can I get clear title to this property? The title company is looking into it but has not come up with a valid answer yet. I do not think the seller signed any kind of notice but he does not remember.
Depending upon the circumstances, including how much time has elapsed the contractor may still have mechanic's lien rights. The bank likely is secured via a deed of trust. There are many variables that may affect or change my answer. Garry Seltzer mechliens@prodigy.net