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Mechanic Rights' to Own Project Asset in the case of Foreclosure.

Hi there - Let's say, for example purposes, that there was a foreclosure on the project. How would the value get liquidated so that the mechanics lien laws provide payment to the mechanic, subcontractor, and suppliers? Specifically, would the bank issue payment - and would there ever be a scenario where the mechanic could purchase the asset, with subcontractor/suppliers as an interested party on the asset (partial owners, let's so 10% each)?

3 replies

May 20, 2020

Of the funds distributed to legitimate lien claimants, there would be a pro rata distribution and, yes, assuming the property is foreclosed the lein claimants could buy the property in foreclosure. Carlton & Alberola and/or Andrew Carlton have not been retained by the recipient of the above comment and, moreover, the above comment does not create an attorney-client relationship. The above is general commentary based on limited and insufficient information. If you wish to obtain legal advice, please contact Andrew Carlton at 949-954-6666 x101, or by email at andrew@cnalawfirm.com.

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May 20, 2020

that's "lien" not lein, of course

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Oct 28, 2022

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