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Home>Levelset Community>Legal Help>I have a lien that is expiring and the homeowner would like to create a payment plan. That would extend past the expiration date of the lien. What should I do to protect the lien or our ability to collect?

I have a lien that is expiring and the homeowner would like to create a payment plan. That would extend past the expiration date of the lien. What should I do to protect the lien or our ability to collect?

IdahoLien DeadlinesLien ForeclosureRecovery Options

We're nearing the end of the timeframe on our lein. The homeowner made two payments in the last six months. One for $1,000 and one for $500. They owe another $7500 on this one. They've said they'll pay $3,000 today and would like to agree on a payment plan for the remaining balance. Anything beyond this month is out of our traditional lien rights and timeframe. What can I do to extend the lien and help maintain that level of protection? Should I accept the payment plan?

1 reply

Sep 17, 2018
While I'm sorry to hear that time may be running out on your lien claim, it's great to hear that the lien has compelled payment! This can be a very tricky situation for lien claimants - at the end of the day, promises to pay don't mean anything for your lien deadlines. To be sure, the deadline to enforce an Idaho mechanics lien is 6 months from the date on which the lien was filed. If the lien is not enforced prior to that date, it will no longer be enforceable. However, Idaho is one of the very few states that allows a mechanics lien enforcement deadline to be extended. The deadline may be be extended by “payment on account” or “an extension of credit given with expiration date thereof” provided that “such payment or credit and expiration date, is endorsed on the record of the lien.” This extension allows the lien to be enforced within 6 months after the date of such payment or extension. Note, though, that an Idaho mechanics lien may likely only be extended once - so if a mechanics lien is extended and payment is not completely in hand 6 months afterward, you may find yourself in the same position, but without the option to extend the lien claim. In such a situation, as mentioned above, a claimant must either enforce their lien or let it expire. If tock is ticking close to the lien enforcement deadline, it may be wise to consult a local construction attorney for advice on the subject and/or to represent you in a lien enforcement action, should that become necessary. Good luck!
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