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Home>Levelset Community>Legal Help>I am a private lender lent to a small developer to construct a home for resell in the City of Sonoma, CA.

I am a private lender lent to a small developer to construct a home for resell in the City of Sonoma, CA.

CaliforniaMechanics LienRight to Lien

I lent (along with approximately 12 others) money to a company called Legacy Group, Inc for the construction of a single-family home at 18438 Carriger, Sonoma, CA, APN 133-050-017. The house has been completed and was on the market last year but they pulled it from the market last year and have not yet put it back on the market this year. They have not paid their property taxes nor have they paid a hard money lender. The borrower, Randy King, is the president of the Legacy Group and they are out of Colorado and almost impossible to contact. My question is: Can I file a mechanics lien in hope of getting some of my money back ($65,000) in the event that the house is foreclosed?

2 replies

Jun 17, 2020
Mechanics lien rights are generally only available to those who have provided work for an improvement. And, lenders aren't entitled to file a mechanics lien. With that being said, there absolutely may be other recourse available - and consulting with a California construction lawyer should help identify how best to recover your investment.
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Jun 17, 2020
Thanks for the helpful information!
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