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Re: Certified Notice of Intent to Foreclose

California

We are a subcontractor that erected scaffold for our customer, Reserved Builders in August 2018. Customer rented equipment on a 28-day basis until August 2019. Customer made a couple of payments throughout his rental term, however, when job was closed with us, not all equipment was returned, so there was an additional invoice for equipment billed as missing, on top of the other outstanding invoices. I have 36 days that I entered into our notes, trying to collect from this customer. It appears that the prelim was filed nine months after the initial invoice. I was told that we filed too late, then in speaking with our rep from Levelset, he stated that as long as we were still on the job, and filed, even though late, that it would still protect us from the 20 days before and beyond. After not getting anywhere with obtaining payment, I spoke to our Levelset rep again and he stated I should still file a notice of intent to lien as well as a mechanics lien. The mechanics lien expired, and has not been reissued. Today, we received a letter from the property owner's legal counsel that states that because the mechanic's lien is expired, it is now unenforceable. Counsel is stating that if we do not release the lien, they will file a "Petition for Release of Property From Mechanic's Lien" and will seek recovery of all attorney's fees from us. I spoke to my contact at Levelset this afternoon, who stated that we may want to file a certified, "Notice of Intent to Foreclose". What recourse do we have to obtain the money owed to us at this point? $15,601.35 is owed to us, plus interest and collection fees if possible. It should be noted that this account was with our collection agency for months and they were never able to collect a cent. Your input is greatly appreciated.

1 reply

Oct 4, 2021

This sounds like a relatively touchy situation. If your lien is expired, then you probably don't have any lien rights unless the project is still going or only recently finished. You might have some breach of contract rights against the contractor that hired you. You would need to talk to a construction attorney to go through all that though.

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