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October 21, 2007
Help...I have a huge problem..lien put on my home
I don't even know where to start. I am a single young lady who purchased my first home 3 years ago and I am slowly renovating it. In August of this year I hired a contractor that several of my neighbors used to do renovations in their home. He did excellent work and charged accordingly.He seemed honest ,professional and reliable so much so that my neighbors each gave him a key to their homes to have access to do the renos while they were at work, so I followed suit .I had my aunt drop by unannounced on her days off (she has a key) to make sure work was being done and see that things were going as planned. He appeared to have my best interest in mind by suggesting ways to improve on doing things or suggesting ways to get the job done in a less costly way.He completed the job and was paid in full for materials and labor.Well imagine my surprise when I received a certified letter and upon opening it discovered that a "mechanics lien " was put on my home from some company that the contractor apparently did business with. How and why this company was able to put a lien on my home is baffling to me as I never did any business with them. I wont know what is going on till I speak to them . They are closed till next week .The letter itself is in legal terms that I don't understand.I am panicked as I feel this will ruin my impeccable credit now and worse than that, when I tried to call the contractor, his numbers are disconnected.Both home and business, cell etc.I have such a headache.I dont know what a mechanics lien is, why this company put a lien on my house and how they were able to do so. I am now scared of what is to come .I simply hired him from recommendations to do work. Now I have a lien and a sum of over $5000 apparently owed to this supplier.I shudder at the mere thought that he screwed other businesses and they somehow come after me as well.In the meantime, what recourse do I have? I know more than likely I will have to get a lawyer but what kind? When this lien is removed,how will this affect my credit? What if the business doesnt want to take the lien off until they get paid, will I have to pay it? I paid the contractor in full and he completed the work.Aside from getting a lawyer and filing a complaint with the better business bureau, any suggestions on what I should do to protect myself against any other claims that might come in the future? Any, any suggestions or comments would be appreciated.
Comments
I am sorry for your difficulty.
Keep every single piece of paper you receive from them.
Look on the paper and try to find an index number.
Please read the document as you will have to put in an answer within a certain amount of time
.Go to the courthouse with your index number and fill out a requisite
form and get the file and photocopy everything in it.
Posted by: Ysabelle at October 21, 2007 11:45 AM
Try to find out if he did this to other clients.
you might be able to pick up on a pattern of negligence and abuse
.Maybe the district attorney can help you.
They dea lin fraud cases.
Posted by: Ysabelle at October 21, 2007 11:53 AM
Did you have a contract with your contractor? Was it an AIA contract?
Posted by: guest at October 21, 2007 12:27 PM
Legally, how can some company just put a lien on your house without you making some agreement with them? What is to stop any business from simply saying they did some kind of service (without actually doing it) from putting a lien on your house, and holding you hostage until you "pay off" some portion of it because it's cheaper than legal bills? How can the original poster be certain this company delivered materials to her house instead of some other house? Don't they have to legally produce some proof of this? Did they do so?
Unless you legally give a contractor a power of attorney to make you legally bound for something, how can this happen? It feels like any unscrupulous person can simply take advantage of the situation and pretend to have delivered some service, or can be in cohoots with an unscrupulous contractor whereby 7 different companies can put liens on a property (or threaten to) for pretend work that was done, and force the owner to pay up.
Posted by: guest at October 21, 2007 12:30 PM
how did it happen ?
easy
company delivered material to her house , has a signed bill of lading from "someone" at the address, the contractor told them (possibly) that the owner would pay, while telling the owner that it was inclusive.
(or simply didnt pay them and disappeared so theyre going to the next best place, where the materials were used)
suggest you avoid the myriad of suggestions and opinions you will receive here and simply speak very specifically to a real estate attorney at 9 am tomorrow.
have your receipts and contracts ready...
good luck
Posted by: guest at October 21, 2007 12:43 PM
Agree with guest 12:43pm above about contacting an attorney, but that poster was assuming the business putting the lien on your home could also produce a sign bill of lading (which was my question above of a company having to provide "proof"). If you signing for it yourself, you are certainly in a bad position, but if it's just some worker's signature, it seems like the company would have to prove that worker was a real person at that location at the time.
If the court recognizes a lien based on a bill of lading with a signature of someone other than yourself, it seems like it's setting up a situation rife for fraud. An unscrupulous contractor can pay all his friends for materials with cash, and sign lots of bills of lading so that his client has to pay a 2nd time for the materials (and he can get a kickback, too). I'd be surprised if the company doesn't have to provide a bit more proof than this to put a lien on a home. But of course, as poster above said, a good lawyer can advise you better.
Posted by: guest at October 21, 2007 1:06 PM
I am the original poster. Thank you all for your responses. 12:43 you are correct,per the contract, he provided all the materials as well as the labor. I never signed for any deliveries or went and physically purchased any. He got the materials and since he had a key, I dont know if he had them delivered or picked it up himself with his vans because I worked from 8am to 7pm daily. On weekends , whatever materials he needed were always there.I will speak to a lawyer because I must not only resolve the lien issue but find out how to protect myself against any claims presented in the future.
Posted by: guest at October 21, 2007 2:07 PM
OP, I agree with 12:43 P.M. ..... sounds like the contractor took delivery of materials but never paid the suppliers....
I have attached a link from the NY TImes archives that I think will
answer some of your questions about a Mechanic's Lien and how to get it lifted.
Wishing you the best... keep us posted.
Posted by: bren at October 21, 2007 2:55 PM
Would you mind sharing with us the name of your contractor? You say his phones are disconected but sure he'll be trying to get work soon (with a different company name, I know).
Posted by: guest at October 21, 2007 3:13 PM
http://query.nytimes.com/gst/fullpage.html?res=9903E6DF1E38F933A15752C0A9649C8B63
A subcontractor and those who provide materials to the general contractor can file such liens as well. Ms. Berger explained that if a contractor has been paid in full by the homeowner, the subcontractors generally do not have a right to file a mechanic's lien against the property. If the contractor has not been paid in full, however, the subcontractors can usually file such a lien if they have not been paid by the contractor.
''A contractor has an obligation to pay his subcontractors and suppliers,'' Ms. Berger said. ''He can't just take the money and buy a boat.'' Finally, Ms. Berger said, if a contractor files a mechanic's lien for more than the amount actually owed by the homeowner, the contractor could be subject to a significant penalty.
Posted by: guest at October 21, 2007 4:00 PM
Are his initials M.A.?
Posted by: guest at October 21, 2007 4:02 PM
Actually, are his initials M.A. and is it an Italian name?
Posted by: guest at October 21, 2007 4:03 PM
On the internet, look up LIS PENDENS in nyc and you will find a wealth of information on the subject also instructions on how to remove them.
In addition, if you need to answer legal papers call the courthouse and ask to be transferred to the Pro Se (self-representation) department and ask for free help in filing an answer.
You are not as helpless as you think you are.
The nightmare happened to me in a condo which I own with no mortgage or any construction.......ever.
I was an easy target
My condo was owned free and clear from the beginining.
Next time you do renovation or repair tell the contrator to make a list of supplies what is necessary for the job and you can order by phone, pay by yoursef, keep receipts and anything not used return for a refund. No more tap dancing thru your wallet and maybe the potential liens will be cut off in the future..
Without you the contractors would have no work.
If the contractor manages his money badly. why is it your problem?
You hired them in good faith thinking the job would go normally
and they treated you badly for no reason.
Posted by: Ysabelle at October 21, 2007 4:27 PM
You must ask the contractor to sign a RELEASE before you pay him. If you do not do so, any subcontractor or supplier that is not paid may place a lien on your house by producing their contract with your contractor. If you did not get a signed RELEASE you must now contact a lawyer. You are liable for the contractor's subcontractors and his suppliers. That is the way contracts work.
Posted by: guest at October 21, 2007 7:43 PM
Re the credit question: a lien should not affect your credit, as it can only be placed against a property, not a person. It's a PITA to get straightened out but it only encumbers you if you try to refinance or sell the property.
Posted by: zeebee_in_bklyn at October 21, 2007 7:56 PM
Pray to the Lord for help...
Posted by: guest at October 21, 2007 10:08 PM
I went through this myself several years ago in Brooklyn. The article is wrong on several points. In New York a lein can be renewed for two years only. If during that time the lien filer does not move to have the lien perfected it falls off by itself. Hiring an attorney is very expensive in these matters and you can deal with most of it yourself. Once the lien is filed you need to send a demand notice to the lien filer to provide an itemized statement providing proof of what he claims. I believe he has to provide it within either 30 or 60 days. I don't remember exactly it was years ago...In New York anyone can file a lien on your property, they are not required to provide any proof or documents to prove their case. That is left to when and if it goes to court.
Don't panic, they try to scare money out of you. Are the contractors initials BM by any chance?
Good Luck
Posted by: guest at October 21, 2007 11:33 PM
I am the original poster. Thank you all for your responses.I would prefer not to devulge the name of the contractor at this time. I need to get this resolved first. I doubt he will surface anytime soon.Again, thanks for the links and advice.Much appreciated.
Posted by: guest at October 21, 2007 11:48 PM
The contractor is responsible for renewing and if you don't have any intentions of selling or refinancing any time soon you don't have any reason to panic. I would talk to the supply house on Monday.My plumber never paid for my boiler that he installed in one of my buildings... $6000 to the plumbing supply house! Drug addiction. They never put a lien on my property though. I would talk to your neighbors and do a reverse phone search on google. Just type in his numbers in the search window and see if you get any hits.
Posted by: guest at October 22, 2007 4:58 AM
How dare you ask for help, but refuse to provide this guys initials. You should rethink your position. Wouldn't you feel bad if this happened to one of us?
Posted by: guest at October 22, 2007 8:19 AM
Concern over security is understandable because as she said, the OP is a young woman living by herself. Talk about being worried about oneself over others! Calm down 8:19, it's not all about you.
However OP, you actually might be able to locate him if you post his initials. Somebody here might know the guy.
Posted by: guest at October 22, 2007 9:04 AM
"How dare you ask for help, but refuse to provide this guys initials. You should rethink your position. Wouldn't you feel bad if this happened to one of us?"
how "dare" she? give me a break.
this is a single woman living alone. she is completely right to be cautious.
Posted by: guest at October 22, 2007 10:13 AM
perhaps anyone with a contractor horror story should write in with the details and name. if there are a lot of them all anonymous, no one poster can be singled out.
Posted by: guest at October 22, 2007 12:40 PM
Poster on October 21, 2007 7:43 PM has it stone-cold correct. The most important thing: get a Release of Liens from the contractor before you finish paying the job off!
Posted by: guest at October 22, 2007 1:02 PM
could a news show consumer segment help track the contractor down and find out if he's done it a lot? like "7 on your side"
Posted by: guest at October 22, 2007 2:00 PM
I think that some suppliers will routinely file liens when contractors don't pay up on time. The lien against the property (to which the supplies were sent) are another form of leverage on the contractor.
Don't panic. Call the contractor when he is open - if he is as good as you say, he will probably want to resolve this and not have you (and your neighbors) as a negative reference.
Until you know the full story, I think you are right to not divulge the contractor's name - mechanics liens are pretty common, and do not necessarily reflect malfeasance or negligence on the part of the contractor. (And before anyone goes off, I am not a contractor, not related to one, etc.!)
In the meantime, consult an attorney or other consumer advocate (does anyone know of a neutral party (other than us commenters) who can advise this woman? or an attorney who will do so for a small fee?).
Posted by: guest at October 22, 2007 8:47 PM
As a professional in the industry on the commercial side of the industry, the best thing is to be the general contractor, manager over your contractor, to watch/see everything he is purchasing/installing.
When you hire a general contractor,(contract to pay in proportions until issues, all issues are resolved). Had you held 15-20% of your total costs from the contractor, I guarantee this issue would not have happened.
Until all issues are resolved, you've received your C of O, all subcontractors are paid, then release the 15-20%.
You may be liable to pay the mechanical lien contractor, if this contractor did not pay for materials he installed in your house (and you cannot prove it) if you do not have detailed listings of every item purchased and installed.
Hiring someone like myself, an ethical expediter, will resolve issues like this before they happen, but everyone is out for bang for buck, (shown on Brownstoner Blog all the time) and greed. If your total costs were 6,000, paying an expeditor 600, over the 6,000 can save your headaches in the long run.
Posted by: guest at October 22, 2007 11:48 PM
Original poster here......thank you all for your responses. This matter has to be settled in court as the supplier refuses to remove the lien.
Posted by: guest at October 23, 2007 7:40 PM
This is just a suggestion only.
Find out exactly the entity or entities the contractor never paid and maybe you could negotiate with them privately and get them to sign a paper that they got paid from you directly and show the court and demand a dismissal of this insanity.
Otherwise, more abuse comes in the form of lawyers tap dancing thru your wallet.
Think of this from a practical standpoint.
Who is cheaper ......the negotiated settlement or the lawyer who conrols the hefty retainer in this case?
Why would you want to pay their side and your own?
Don't forget all the information is public viewing in the courthouse
That is the purpose of the index number on your legal papers.
You can find out exactly what happened and all parties are mentioned.
Posted by: Ysabelle at October 26, 2007 10:35 AM
hi my contractor has put a lien on my house for work he has not completed and materials i paid for i have already giving him 62.000 and all he's done is the framing is he ripping me off
Posted by: guest at July 16, 2008 2:20 PM
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