Here’s the twisted tale , a lumber yard hires us to build condo’s. We work for the yard and the yard works for the builder. I submit back charges to the lumber yard based on work verbal approved by the lumber yard and the site supper as well. Now the builder is denying the back charges and the lumber yard says they wont pay it since the builder said no. I know never do it unless it’s in writting, if I followed that I would have 20 work auth a day to track. Bottom line I did the work it was approved and no pay. I live and am lincesed in Mich so I think I’m going to file a mech Lein.
QUESTIONS
1. Do I have a chance at ever seeing any money?
2. Am I in the right or will I just get shot down?
3.How would you all proceed? I know reg. mail yet is this woth the fight we’ re talking 4 grand, which is always helpful when frost laws are on and were in a recession.
4. The builder is prez of the local HBA should I make it an issue to the HBA to put pressure on him?
Replies
Every state is different.
Having said that, send a letter of responsibility to the owner. This makes the owner responsible for withholding the money from the builder until it gets straightened out. If the owner pays the builder and the builder doesn't pay you, the owner may have to pay twice. There is a time line involved. Check w/ your attorney for details.
Love the game.
WAHD
Where'd you get my pic from? Thanks for the advice!
As I understand liens, can't sell till the liens cleared.
bobl Volo Non Voleo Joe's BT Forum cheat sheet
Seller can escrow a lien to maka the sale.
WAHDView Image
Frame Boss,
If the builder is a member of the HBA(president no less) you should go through the arbitration process that the HBA offers to members. Keep your time limits in mind for filing the lien, but hold back long enough to see if a less confrontational approach will work.
Just make sure you don't let time for the lien expire if the builder tries to stall you with any delaying tactics.
How will this affect your relationship with the lumber yard? Do you depend heavily on them for work and work referals? It sounds like they are willing to hang you out to dry rather than act on your behalf. Lots of side issues to think about before you start burning any bridges.
John
I feel the yard is in a bad spot they really feel we should be paid but with out getting paid themselves they don't want to lose any more$ on this site, I never mentioned that the yard is owed over500,000.00
I'am also a licensed builder and contractor in Mich. Been down your road, here's how I see it.
1. send letter with complete description of work and extras to yard, project manager and builder.
2. request meeting with all parties involved.
3. no response call attorney.
4. file lien, you have 90 days from last day services were preformed.
5. even though no change orders were issued this doesn't necessarily mean they are not liable, however it does complicate things.
6. your out 4K, settle for less offset legal fees, don't make same mistake again, move on
7. take rotten prick to court and hope for favorable settlement. (ie: you still pay legal fees win or lose
8. as stated previous post builder can insure over lien, which is exactly what he will do for 4K cost to him is minimual. He still closes.
9. chances are attorney is going to file suit against yard and builder.
10. 4K gets eaten up pretty fast
11. bargain with yard for discounts tools, fastners, lumber any thing you can get to make up for loss, take it over period of time so doesn't bite them in #### so hard, and they still have a warm fuzzy feeling.
12. unfortunately developers play this game all the time, they know going in that there are going to put the screws to the trades, you left them an opening.
13. your in a no win situation considering the money value, not that 4K is peanuts to you or me, however it is for them.
14. cut your best deal move on
15. theres always nylons and hydraulic cement, I hear their hell on sanitary lines, just kidding!
good luck god bless
DANUSAN
I live in a differnt state so may not apply to me but what do you mean by "insure over lien", I have a lien on a person that I did work for and he never paid, I know his house is for sale and I figured I'm getting my money soon?
Dont mean to hijack this thread just curious.
Thanks
Doug
A buyer a seller and a title agent are all sitting at a closing one day.
The paperwork starts flowing and the conversation goes like this:
Agent "Lookie here someone has placed a lien against your property."
Seller "No F'n way, who is it?
Agent "Looks like its Doug, do you owe him money?"
Buyer (confused and uncomfortable look on his face)
Seller "I don't think so, I paid him for what he did"
Agent "Well the lien is for $500. There are two ways we can proceed. You can pay Doug or you can cut me a check for the $500. and we will place the money in an escrow account pending a court judgement. Either way you can sell your house lien free today."
Agent, buyer and seller (Ha ha ha ha ha ha......)
The money in the escrow account secures your interest in lieu of the property.
Doug, a lien only holds a mechanics interest in a property pending a court judgement. You need to demand action on the lien. If the court awards you the money and the homeowner still doesn't pay then the court can have the sheriffs office seize the property and place it on the sheriffs auction. When the house sells the sheriffs office pays all lien holders first.
Regardless you still have to win a judgement first.
WAHDView Image
WAHD
Thanks, I thought that I had the money in the bank, was already spending it! Better hold off on that I guess.
Thanks for the info
Doug
Just thought of something else, I know that the guy took out a second mortgage, that combined with the first mortgage is about the value of the house with maybe the exception of the realtors fee, am I just sh!t out of luck?
Edited 3/5/2003 7:05:26 PM ET by Doug@es
just what whad said, you got to get a judgement to enforce the lein. Not totally sure but I think there is also a certain time period in which you have to start a action. However I have seen lein paid with no court involved, hopefully your one of the lucky ones. good luck.
My luck was no good when I did work for this bast-tard, I dont figure it should change now.
If he really did take out the second mortgage then there isnt anything to get anyhow, I'm assuming the banks get theres before I get mine.
Doug
Doug,
The value of the property has nothing to do with it.
Your biggest concern right now is how long your state allows you to hold a lien without perfecting it. My guess is, your lien has expired. If it has not, then contact the owner and remind him/her that you are a lien holder on their property and you plan to take action. Perhaps they will be willing to pay now that you have them on the run.
Also, find out if your state is a trust-piercing state. About half are. If so a valid mechanics lien goes to the front of the line. It even goes ahead of the first trust holder which is the mortgage.
Let me know how it works out for you.
WAHDView Image
Thanks a lot
I'm going to check into that stuff first thing in the morn.
Again thanks
Doug
did a job back a few years ago .owner woulden't pay last $150:00 unless I spent about $300:00 making him happy . I contaacted lawyer aat which point he paid all but $47:00 and told me to go to hell for the rest . At this point I spent $50:00 to lein him . Lawyer commented at this point that I sure must hate the guy. I let the lein expire but lawyers being lawyers when he went to sell the property a couple of years later the proposed buyer's lawyer spotted it and wanted a release . I called my lawyer and asked his advice . He said I could get my $47:00 +legal fees + intrest for a grand total of about $120:00 other wise the #### could take it to court and have the lein declared null&void which would also take approx 6 months. and cost him approx $600:00 Being civic minded I chose the latter. As a result the deal fell through due to the time limit on the deal .In the mean time new law was passed and his x wife had to sign off giving her 1/2 the money he eventially got 1 year later.He called me up and left me a message calling me everything but a whiteman .
Edited 3/6/2003 1:06:20 PM ET by ken1
Who sez revenge isn't sweet? And a pie best eaten cold too.
Joe H
1.did you file a notice of commencement 2. was the work performed in last 90 days3. did you sign any waivers.the lien act has lots of little thins that you have do right to file a lien.The states web site has them I think .
I know they say with leins your ducks have to be in a row I did everything right but the notice of commencment , I really never have the time to go to the reg of deeds and pay the 35 $ every time.Seems like a rip off to me , but 35$ to get $4000.00 is quite a off set I know.