Im a general contractor and I had filed a lien for $20K in Nov of 2021. Since the filing of the lien, the customer made a partial payment of $4K, making the total amount owed $16K. Customer has hired an attorney who has threatened to sue me because my lien amount is incorrect and saying that I cannot enforce the original lien. My question is, can I amend the lien in MI after the 90 day lien period has passed but within the 1 year enforcement period? And does my lien automatically become invalid because the lien amount is no longer correct?
The partial payment made by the owner reduces your lien amount by the amount paid, but it does not invalidate the lien. I agree with Mr. Weiner in this regard. Nor does a partial payment require that you file an amended claim of lien.
If you file a lawsuit to foreclose on the construction lien, which must be done within one (1) year of recording, your suit must acknowledge the partial payment. So, if your lien started at $20,000 and you received $4,000, the suit would seek $16,000, plus interest, costs, attorney fees, etc.