We filed a mechanics lien on 10/21/2020 and the homeowner contacted me today to state the home is in escrow and he would like me to remove the lien as it is affecting the close of escrow. I told him I was not able to do this. Please note he has yet to pay the outstanding balance due hence why I have not removed the lien. I am also worried that the 90 day time period for enforcing the lien has passed and he may be able to sell the house without us being paid. What can I do to ensure we get paid when the house sells?
You only have 90 days after recording a lien to file a lawsuit to foreclose the lien. After that, the lien expires. Thus, most likely 90 days have elapsed from recording at this point and the lien is not valid. In the future, if you want to maintain lien rights beyond 90 days from recording, you must file a lawsuit and record a notice of lis pendens within that time frame. Now that the lien is expired, the owners can demand that you remove the lien and can file a petition to expunge the lien at your cost if you fail to comply.
At this point your best bet likely will be to release the lien and if you still want to pursue the money, file a normal collection action. Even though you have likely lost your lien rights, you still have a claim for breach of contract.
The escrow company may force them to deal with the lien even though it is invalid. But they have three options: Pay you, bond around the lien, or file a petition to expunge the lien at your cost. If they obtain counsel they most likely will choose the third option.