Home>Levelset Community>Legal Help>What options do I have when we filed the lien for the wrong amount. We filed for $221K and we are owed $151K left on the job. The lien has been recorded.
What options do I have when we filed the lien for the wrong amount. We filed for $221K and we are owed $151K left on the job. The lien has been recorded.
What options do I have when we filed the lien for the wrong amount. We filed for $221K and we are owed $151K left on the job. The lien has been recorded.
1 reply
Jun 16, 2020
Minnesota's mechanics lien statute doesn't specifically address whether or not an amended mechanics lien will be effective. So, it's not quite clear whether an attempt to alter a filed lien would be successful. But, if the deadline to file a mechanics lien hasn't passed, generally, claimants are typically able to update their lien claims. But, ultimately, it is possible that overstating a lien could render a lien claim unenforceable. After all, under MN's lien statute, mechanics lien claims are limited to the amount owed but unpaid.
Most states are accepting of mechanics lien amendments as long as the amendment comes before the deadline. Levelset discusses that here: Mechanics Liens: Can a Lien be Amended? Another route some claimants take, if the lien deadline hasn't passed, would be to file an updated lien claim, then release the first (flawed) lien document that was filed. Granted, that's probably the riskier of the two options. If the lien release language releases all lien rights - then it could end up ruining both claims.
Finally, it's worth noting that there's a difference between an honest mistake and a fraudulent lien claim. If the lien was overstated on accident, then it's possible you might be able to file a motion to reduce the amount of the lien if the lien is challenged or if you end up having to enforce the lien claim.