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Is 'bonding off' my only solution regarding a mechanics lien?

OregonMechanics Lien
Shana Harris

I'll try to keep it simple. My son and DIL, who live in CA, and with my influence, purchased an investment house in Portland, OR, 3 years ago - that I use as a part time residence. I reside in a nice basement ADU - which I completed during it's remodel, last year. I hired a one man contractor and paid him the first 2 payments progress payments and withheld the final payment. He did not complete the contract and missed his Nov. 2020 completion deadline - coming to (near) completion in July 2021. I put in the HVAC at my own cost, since he wouldn't. I paid other contractors to correct a few minor things. His contract specifically lists what was expected of him. His reason for missing his deadline was to take on more lucrative jobs (he admitted). I was texting him daily to see if he would show up! He cost me time, anguish, massive depression, and 7 months of lost rent - which was financially devastating! He filed a mechanics lien on the house on Nov. 24th. I am not on the house title. This is about to become an issue as my son just began the process of doing a cash out refinance. The contractor has 120 days to file a lawsuit to perfect - I believe. I think I need to bond off - which is supposed to be costly (I have yet to look into it). My son has no knowledge of this contractor - but the court would declare me his agent by default. All my son knows is that I am doing improvements - as I have in the past - no specifics. I think I have to be proactive and file a small claims lawsuit for the $10K court limit. His lien is for $21K. Do you have any suggestions? Are there any other approaches? I emailed him a goodwill offer of settling for $8000, a few weeks ago. Google can only get me so far - but at least small claims is familiar and has been a productive resource for me. Thanks, all!

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