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Liens next step

GeorgiaBonding Off LienRecovery Options

I filed liens through levelset. They bonded them to have them removed. What is the next step? Thanks, Jeff Bischoff

1 reply

Dec 2, 2020

First, it's important to note that having a lien bonded off isn't necessarily a bad thing. When a lien is bonded off, the lien - itself - is no longer a threat to the property title. But, the lien claimant can still pursue their claim against the bond that has replaced the lien in a way that's similar to mechanics lien foreclosure. Often, developers or GCs will be required to bond off liens to keep the owners' title clear. In any event - it's pretty common for liens to be bonded off. 

Just like after a lien filing, the next "official" step after a lien has been bonded off would be to enforce the claim by pursuing a lawsuit. So, effectively, all that changes when a lien is bonded off is the collateral on the lien - it changes from the project property to the surety bond itself. Levelset discusses mechanics lien bonds here: (1) Don’t Be Afraid Of Threats To Bond Off Your Mechanics Lien | Levelset; and (2) What does bonding off a Mechanics Lien mean? [immediate steps to take!] | YouTube

When a GA lien is bonded off, it doesn't really change the next steps or the timeframe for taking action. A claimant will still generally have 365 days to enforce their claim by filing an enforcement lawsuit against the bond. Granted, that's a lot of time - so, typically, a claimant will negotiate payment during that time. Sending additional escalation documents like invoice reminders, a Notice of Intent to Foreclose, demand letters, etc. could be useful, too. And, during this time, it's generally wise to decide whether or not the claim will be enforced, and a GA attorney can be helpful with that. When necessary, you can begin the search for attorney here: Top Georgia Construction Lawyers.

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