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How to fight a lien for more than the amount billed to me.

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My builder filed a lien for $20k on my house after we missed a deadline to settle a dispute over several breaches of contract, dispute over paying my husband for work he performed that was agreed upon by the builder and dispute about billing. The builder owed my husband for working and supervising the build for over a year because they could not keep up with our custom home.We were over 7 1/2 months late moving into our home and the work to complete our home or fix problems continued for over two months daily even after we moved into the home. To date, the punch list has never been completed. There were no change orders or clear invoices even though change orders were required per the contract. After weeks of trying to figure out their erroneous and incomplete billing, we finally settled on a mutually agreed upon "final" bill of $10,500 for extras. Then out of the blue, a lien was filed on our home even though the builder gave us an amendment to the contract which stated the final bill was not due until a final walk through was performed and a certificate of occupancy was given. They did not show up to the CO inspection --my husband did the walk through with the inspector. They never performed a final walkthrough at all. We are both 100% disabled Vets with PTSD. This lien is causing me horrible stress. They are threatening to sue and have our house foreclosed on for the $20k if we don't settle the other dispute. We paid over $500k for the house which was almost all of our savings as well as a hefty mortgage. I do not owe them $20k but I am going to pay it for some peace of mind. My question is this: If I pay the lien can I still go after the builder for filing a fraudulent lien?

1 reply

Oct 17, 2019
There is a lot to unpack in your post, but to answer your specific question, it might be hard to pursue the builder for filing a fraudulent lien if you've paid it. You should consult with an attorney to discuss this in more detail, but you may have other options that do not require you to pay the lien before challenging it. Construction liens are only valid for one year, and you may be able to shorten that time period with a notice of contest of lien. Again, you should consult with an attorney about that.
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