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What are our options?

Massachusetts

We had to file a lien on our customer for non-payment. Lien amount is for $28,200.00. They want to pay part now ($20,725.00) and the remainder in 5 business days. They told us the following: When the payment of $20,725.00 is made to Universe, the lien of $28,925.00 becomes invalid as payment would be received by Universe at that point. Given the attempt of a meeting of the minds by NSC, we respectfully ask that the lien of $28,925.00 be removed once the $20,725.00 is received by Universe.

5 replies

Sep 9, 2022

I would not agree to dissolve the lien unless and until you have payment in full. You could propose a Lien Dissolution be executed and held "in escrow" by their counsel until you are paid in full, but if you dissolve before full payment you do so at your own risk--espececially if outside of the statutory lien period pursuant to Mass. G. L. c. 254. Feel free to contact me directly if you have questions. 

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Sep 12, 2022
Up to contractor to release lien upon partial payment or full payment. Partial payment is not "payment" as the customer is construing it.
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Sep 12, 2022
Send a letter saying all payments will be “placed on account” and that the statement of account necessary to finish the lien will reflect the credit. Do not discharge the lien, do not deposit or cash any check or cover letter which notates that is a settlement in full or satisfaction of the claim
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Sep 19, 2022
I would not agree to release the lien until you are paid in full. There are probably ways to work around the issue if this is holding up a sale or refinance, but you need to be assured you will be paid. Once you release the lien, you have no more security or guarantees.
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Sep 19, 2022
I would not agree to release the lien until you are paid in full. There are probably ways to work around the issue if this is holding up a sale or refinance, but you need to be assured you will be paid. Once you release the lien, you have no more security or guarantees.
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