i am a contractor who work in a renovation project. The client is refusing to pay. i already submit a mechanical lien on the property, but even though the lien he is not willing to pay, i been advised to place a foreclosure order on the property, but i dont know what will be the best thing to do in order to get that money back.
You have 90 days from recording your lien to file a lawsuit to foreclose. If you have time, send a demand letter attaching the lien and asserting that you will file a lawsuit to foreclosure if you are not paid. If this does not work, or you do not have time, consider filing a lawsuit to foreclose. Whether or not it is worth it to do so will depend on the amount in dispute. If the amount is less than $10,000.00, small claims may make more sense given the cost of filing a foreclosure action. Another factor to consider will be whether or not you contract has an attorneys' fee clause.
You must file suit within 90 days of recording the lien. You should talk to a construction lawyer in your area. Good luck.
Your mechanic’s lien will expire unless you file a lawsuit to foreclose the lien within 90 days of the lien recording date. Whether or not it would make good business sense to file the lawsuit depends on how much more you’re owed and several other factors. In many cases, if the amount you’re owed is less than $15K, it would probably cost you more than this in attorney’s fees if the case went to trial. I’m happy to answer any questions you have about this.
Cathleen M. Curl, Esq.
Law Office of Cathleen M. Curl
700 El Camino Real, Suite 200
Millbrae, CA 94030
T 650-871-5955
F 650-588-7101