Have filed lien, to no avail. I have filed 'notice of intent to foreclose', again - to no avail.
1 reply
Sep 5, 2018
While mechanics liens are powerful tools to secure payment, and oftentimes can prompt payment just because they are filed, that is not always the case. In some circumstances, the mere filing of the lien is not enough, and the lien must be enforced in order to obtain payment.
The enforcement of the mechanics lien through a foreclosure action is a specific part of the lien law in every state. In California, provided a valid mechanics lien was filed, and all associated requirements were met, a mechanics lien remains valid for 90 days after the lien was filed. Since the lien will expire after 90 days after filing, an action to enforce the lien must be initiated within that time period.
A foreclosure/enforcement action is a lawsuit. While an individual may represent himself/herself in court (although it is rarely a good idea) a company is not allowed to represent itself without a lawyer. In order to initiate the foreclosure action, a company must have a lawyer file suit in court in the county in which the property subject tot he lien is located.
Additionally, the lien claimant is required to record a notice of the pendency of the action, on or before 20 days after the commencement of the action. This notice must be recorded in the office of the county recorder of the county in which the property is situated.
While filing and dealing with a lawsuit can be expensive and time-consuming, the court may award the prevailing party the money paid for recording the lien, and attorney’s fees, as costs.