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Protecting property by filing lien vs lis pendens

CaliforniaMechanics Lien

A party sold a commercial lot (2016) that had a wrap on it (loan in 2014) unbeknownst to the buyer who paid $60,000 cash for it. The lot was Grant Deeded and recorded at the County Recorder's Office. A foreclosure was filed in 2018 against the original borrower and notice of the foreclosure was given to the lot holder who contacted me for help. The original borrower filed a BK to stop the foreclosure and the Judge set up a payment program but eventually the borrower let the foreclosure happen. The owner of the commercial lot, my client, was never notified of these events until he saw a For Sale sign posted. Our intent is to cloud the title until criminal action can be filed against the seller of the lot. A Preliminary Title Report shows the commercial lot was signed off by the original owner and not by the current owner (my client). Again, until criminal action can be filed against the Seller of the lot for fraud, grand theft, failure to notify the buyer of liens, forgery of a document and cohesion with the lender and others to do a side deal (have copy of signed contract) to resale the lot to the original seller.

1 reply

Jun 25, 2018
I'm sorry to hear about that, it sounds like a tough situation. Unfortunately, though, this sounds less like a mechanics lien (or construction law) question, and more like a situation for a real estate attorney - they will be able to help determine whether filing a Lis Pendens is an option here. Mechanics liens secure the right to payment for those who provide construction labor, services, or materials to a project. Utilizing a mechanics lien for some other purpose, contrary to the intention of the legislation, can be risky businesses - doing so could result in a fraudulent lien filing. We've discussed the specific use of utilizing a mechanics lien to stop foreclosure in this article: Will Filing a Mechanics Lien Stop Foreclosure?
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