Menu
Home>Levelset Community>Legal Help>Is 'bonding off' my only solution regarding a mechanics lien?

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

OregonMechanics Lien

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!

0 replies