To lien or not to lien

[SmithBuilt]

I've been down this road also. I chose not to lien. The contractor was and still is a friend of mine. He continued to pay me what he could until the balance was paid. If I had pulled a lien the payments would have stopped immediately. Plus we stayed on good terms and he has payed me back many times over with more jobs, some that I don't have any competition on.

This may not work for everyone but it worked well for me in this instance. I would slap a lien most contractors in a heartbeat.


If your contractor is close to bankruptcy a lien probably will not get you any money anyways. Everyone looses in bankruptcy.

 

[JWCELECTRIC]

That might not be a wise idea. check your state rules. In CA you cannot take more mony than work material Period.

So you would want to get paid only for the first half, then complete the second half and possibly have to wait another 80 days plus to receive final payment if he pays at all, Good Luck with that! The HO proved that he can't be trusted to pay on time for the first half of project, what makes you think he can be trusted again? It's just a deposit upfront to complete the project and to put the ball in your court to give you security for your efforts.

 

[mcclary's electrical]

I got out of his story that it was all gutted and waiting for rough-in inspection, not that he went back and yanked everything. I wouldnt call that fradulent!:grin:

thanks volts,,,,you're right,,,,It was gutted for rough-in,,,,long BEFORE THE LEIN,,,,,,,,,,What I did was legal,,,,,,,it just threw a wrench in their plans.

 

[Sierrasparky]

So you would want to get paid only for the first half, then complete the second half and possibly have to wait another 80 days plus to receive final payment if he pays at all, Good Luck with that! The HO proved that he can't be trusted to pay on time for the first half of project, what makes you think he can be trusted again? It's just a deposit upfront to complete the project and to put the ball in your court to give you security for your efforts.

In ca the Law is the LAw. You cannot take more mony from a "homeowner" than you have completed in the project. I Ca you will be upside down the entire time except for the max deposit or 10% or 1k. The Law is so lopsided I wonder If I want to even be a contractor anymore. The best action is to work for a GC or only people you know you can trust. In today's world It is very scary to go the lein route. It can cost upwards of 10-15k in legal fees alone and still not get you to perfecting the lein.

 

[Rick Christopherson]

thanks volts,,,,you're right,,,,It was gutted for rough-in,,,,long BEFORE THE LEIN,,,,,,,,,,What I did was legal,,,,,,,it just threw a wrench in their plans.

OK. Sorry for my incorrect assumption. The wording you used made it sound like you went back in a stripped out devices.

 

[jrannis]

Lien and begin foreclosure or they will not take you seriously

 

[ceb58]

Relationship, that is we have to complete the other half of the job in a few months. What do you suggest?

No, what you have is a signed contract. In your OP you stated you had a signed contract with payment schedule. The customer has not live up to his end of the contract, plain and simple. You ask "should I lien or not" you received answers that all lean toward protecting your investment. If you feel that you have some relationship that needs protecting to complete the job in a few months then stick it out and hope he pays. You know your customer,we dont, go have a sit down with him, face to face. Explain that you need your money for your work performed and that he is contractually obligated to you for that payment. If the customer balks or tries to come up with every excuse under the sun then your gut will tell you exactly what to do. It's fine to have a relationship with the customers but when it's all said and done it's not personal it's bussness.

 

[Sierrasparky]

Lien and begin foreclosure or they will not take you seriously

So what does it cost to start foreclosure in your state?

 

[quogueelectric]

In god we trust all others get liened. You explain that you didnt want to do this but you are forcing me to do this.

 

[Sierrasparky]

In god we trust all others get liened. You explain that you didnt want to do this but you are forcing me to do this.

SO what does it cost to perfect the lien and start forclosure in your state?

 

[wirenut1972]

contractorslienservices.com

I paid about 80 bucks for this guy to just start with the letters and all, funny thing a few days later I had a check.:grin:

 

[magictolight.com]

contractorslienservices.com

I paid about 80 bucks for this guy to just start with the letters and all, funny thing a few days later I had a check.:grin:

Didn't even know this service existed. Going to try to give the client a call today and then let these guys go to work. Hopefully won't have to!