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How to get my money?

Delaware

I place a lien on a property in Delaware county in November of 2020 and it as not been recorded maybe sometime in January 2021. The house was sold in December 2020, owner got paid but I’m yet to get my money owed. What is my next move when the lien is finally place on the property to get my money?

1 reply

Jan 15, 2021

First, note that there are a few steps that lien claimants can take after their lien is filed in order to help force payment. This includes notifying all potential stakeholders about the lien, negotiating with your customer, and even threatening to enforce the lien via Notice of Intent to Foreclose. You can learn more about those steps, here: The 4 Steps to Take After Filing a Mechanics Lien.

Things can get a little more complicated when there's a sale in play, as Levelset discusses here: What Happens If I Filed My Mechanics Lien After the Property Was Sold? Generally, the right to file a mechanics lien runs with the property - the lien claim is against the property, itself, not against any particular owner. Granted, sorting out the priority of the lien claim can be a bit of a headache. 

In any event, a property sale can actually make it easier to recover on a mechanics lien in some cases. Once the lien is filed, sending notice of the lien filing to both the buyer and the seller and demanding that they make payment can put a lot of attention on the claim. New owners generally hate threats to their property title, and that can put extra pressure on the seller to pay their unpaid bill. It can also help to get their title company involved, if at all possible (and sending notice to the buyers could result in them notifying their title company). Plus, if the mortgage company realizes there's a lien against the property - and potentially one threatening the mortgage's priority - they may want to intervene, too.

What's more, a seller is typically obligated to notify the buyer if there are any outstanding claims or potential claims against the property. And, a seller's failure or refusal to provide that information to the buyer could result in additional legal troubles if the seller can't make the lien go away quickly. Meaning, additional pressure could be mounted on the seller to pay what's owed.

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