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What to do after GC bind our lien?

New YorkBonding Off LienForeclosureLawsuitMechanics Lien

We have recently filed our first lien through your service. GC responded that he will be binding lien tomorrow. We have all rights to believe our lien is valid and we have multiple proofs of account being well stated. Please advise what should be our next step.

1 reply

Jul 10, 2019
That's a good question. I'll assume you're referring to a mechanics lien being bonded off. When a lien is bonded off - the claim doesn't disappear, and it could still lead to recovery. However, the method of recovery changes a bit. Rather than the lien attaching to the property title, when a lien is bonded off, recovery would ultimately come from the surety bond itself since it's been essentially substituted for the property.

Generally, when a mechanics lien gets bonded off, the next official step would be to enforce the claim against the bond, just like a lien claimant would enforce their filed mechanics lien. As far as timeframes go - it appears that the timeframe for enforcing a New York mechanics lien that's been bonded is the same as the timeframe for enforcing a regular old New York lien. And, in New York, a lien claim is generally effective for one year after it's filing.

Of course, it's typically a good idea to try and negotiate payment and try to resolve a dispute before it comes down to a lawsuit. Often, by threatening an enforcement action, a claimant can show that they're serious about recovery and won't go go unpaid. But, ultimately, if enforcing the claim does become necessary - it's a good idea to consult a local construction attorney before proceeding since enforcement requires legal action. For a little more background on the New York lien law timelines, here's a great resource: New York Mechanics Lien Overview.

Further, here's another article that should be valuable: Don’t Be Afraid Of Threats To Bond Off Your Mechanics Lien: Explaining Mechanics Lien Bonds.

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