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How to remove an invalid mechanic's lien (Expired 90 day period is over) when contractor is no longer accessible?

How to remove an invalid mechanic's lien : 1) No law suit filed within 90 days 2) A demand letter to contractor sent and no response from contractor 3) Contractor's current licence is expired, no longer in business 4) Not reachable by any means, server is unable to serve the court documents as contractor is no longer available anywhere What are the options in this case? Do we have to do a paper publication? How long this lien takes to clear the title? Not able to refinance the mortgage due to the lien is on title. Appreciate any suggestions in this matter.

4 replies

Feb 21, 2021

There is a process to get a lien removed by filing a petition with the Court. You have the ability to have a Court issue an order removing the lien, and the contractor who recorded the lien will be liable for your attorney's fees. Of course, if the contractor is out of business, it is unlikely that you will be able to collect. Ask a construction lawyer to help you with the filing of a petition to remove the lien.

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Feb 21, 2021

Thanks for the response, I am working with an attorney, My attorney says we need to keep requesting for a new court date till we reach the contractor, In this case, my main interest is to get the clean title, not worried about the fee recovery from contractor. Would like to take opinion on How many times we have to try and i am sure he left this state so we can't reach him anymore, so what are alternate options? Thanks once again.

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Feb 21, 2021

The Court is going to require an effort to serve the contractor. If multiple efforts to serve the contractor are unsuccessful, your lawyer can apply to the Court for an order for publication of the petition. Once the petition is published, service upon the contractor is deemed to have taken place. Standards for diligence vary by court, but usually three times is the minimum number of times. You should talk to your lawyer about this.

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Feb 24, 2021

You can bond around the lien which will give you clear title to the property. You do this by buying a Lien Release Bond from a bonding agent. You record the bond and send the contractor a copy of the bond by certified mail. The lien is automatically released and the bond is substituted in its place. This is the fastest method but can also be expensive depending on the amount of the lien. The contractor has 6 months to sue on the bond or he’s barred from suing on it. Your attorney can also file a Petition to Release the Property from the lien in Superior Court under Civil Code Section 8480. By law the hearing date must be within 30 days of the filing date. The contractor can be held responsible for reimbursing you for your attorney’s fees. I’m happy to answer any questions you have on this.

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