I have placed a lien against HFZ Capital and have been advised that the bank of Ireland has now taken possession of the property. What happens to my lien? Do i file against the new lien against the bank? Also can the bank foreclose on the lien?
Generally, if the bank has taken over a property you've liened, it might be time to loop in a construction lawyer. When there are multiple security interests at play in a property (like a mechanics lien, a mortgage, and some other financial security), navigating priority among the interests can be quite complex. Further, it's important that all of the relevant debtors understand where they stand in relation to one another. For more lien priority talk: Lien Priority – What Happens When Everybody Is Trying to Grab a Piece from the Same Pie?
To directly address the question - generally, when a bank has taken over the property, a foreclosure may be on the horizon. Depending on the equity in the property, the priority of the lien, and the number of debtors involves, that can be a headache. When a bank takes over the property, refiling a lien is generally not necessary. And, no - the bank cannot foreclose the mechanics lien that was filed. However, the bank may well foreclose whatever security interest they have in the property, thereby requiring some action from other lienholders.
For help navigating this situation, here's a list of some of the top New York construction lawyers who might be able to assist: Top New York Construction Lawyers.
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