We filed a lien but now there is another deadline for a lien extension? What is that mean and what do we have to do before the deadlines expires?
1 reply
Feb 18, 2020
Filing a lien is not necessarily the end of the road for a lien claimant on the path to getting paid. Mechanics liens in every state eventually expire and become unenforceable if an action to enforce the lien is not initiated within a certain amount of time.
In California, an action to enforce the lien (a foreclosure lawsuit) must generally be initiated within 90 days of the day on which the lien was recorded. However, California is one of the few states that allows the time period to initiate an enforcement action to be extended.
The process to file an extension in California is difficult, however, since it requires the consent and signature of the owner. A California "lien extension" is actually called an "Extension of Credit" and it is a document whereby the owner and lien claimant agree to a payment schedule that tolls the deadline by which the lien must be enforced for no longer than 1 year after completion of the work of improvement.
Generally, if the deadline is coming up the next action for a lien claimant is to file an enforcement lawsuit, not a lien extension.