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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 110566
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I have a statement of claim and privilege recorded on a

Customer Question

I have a statement of claim and privilege recorded on a property our company performed work on in the fall of 2015. My issue comes with the fact that we performed the work for the owner of the home and then the owner was foreclosed upon without our knowledge. We filed the lien timely, but not prior to the bank taking back the house. The bank is now under contract to sale the property and is saying our lien will not be valid. We are looking to file a Lis Pendens in an effort to collect our money. Will this help? If so who do we file it with? IE... "xyz company vs. who???" Also if the principal amount of the obligation is $30,000 we have to put up a bond of $37,500? We don't have an extra $37,500 laying around... how do we go about doing this? Is putting up a bond a guarantee we will get paid?
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you did not get the lien filed in time and even if you did the bank would have had a priority lien over your lien, so filing the lien right now is too late now it has been foreclosed. Suing the owner that you contracted with for breach of contract is going to be the best remaining legal option against them, as a lis pendens would have to be dismissed as they no longer own the property and the mortgage company's lien was a priority lien I am afraid.
Customer: replied 2 months ago.
Thanks for the prompt response.I filed the lien on 2/17/16 and the bank had a "title policy" dated 2/24/16 of when they took the property back.. My lien is valid.
Customer: replied 2 months ago.
Also,On a different claim I have with a different owner... I timely filed my lien and the owner then filed a "breach of contract" suit on me. I then filed a reconventional demand. Can I still foreclose on the property even if we are still litigating?
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for the clarification.
So you would need to get the bond up to file the lis pendens or you have to file in court to ask for a waiver of the bond, which the court has authority to do based on your proof that the claim is valid.
On the other claim, if there is a suit pending, you cannot do anything further until the suit for breach and the reconventional demand claim is settled in the court.
Customer: replied 2 months ago.
on the first issue.....
I just get a bond in the amount of the claim I have against the owner $30,000 + 25%? Do I have to put up the full amount? When do I get paid on this?
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
Yes, you would need to obtain the bond and place it with the court. You would get paid when your case settles or the party who took the property in foreclosure comes to settle the liens. You would file the lis pendens and file in court to foreclose on your lien is what I would suggest because if not the bank is going to just let your lis pendens sits until they finally find some buyer from the house and it needs to be cleared from the deed, so that is a long time to tie up your bond waiting.
Customer: replied 2 months ago.
Thank you... I'm working with the "buyers" title company who is buying it from HUD... HUD is saying the lien is not valid as it was filed after the banks "Notice of Seizure"...
Here is the timeline::
11/7/14 - Notice of seizure
8/5/15 - Sheriff Sale
8/21/15 - Bank deeds to HUD
8/26/15 - Deed recorded
10/30/15 - Our company is contracted to perform work, by the GC..
11/15/15 - 1/31/16 Our company performs the work
2/17/16 - We file statement of claim and privilege for non payment
2/24/16 - HUD title policy datedIs my lien valid?
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
If you did the work on the property well after the foreclosure sale, you have a right to put the lien on the house, since the work provided was after the bank seized the house. Of course, they may try to fight it by taking you to court to remove the lien, but you would file a reconventional demand to force them to pay.

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