Regardless of the circumstances a creditor or lender who desires to recover money owed by means of a judgment lien due process of law must be followed. The creditor must file a lawsuit in the state court of venue against the borrower. If the creditor wins the suit a judgment will be entered against the defendant debtor. Judgments can be used as wage garnishment, bank account levy, seizure and sale of non-exempt property, or liens against real property belonging to the debtor. Please be advised all states have specified types and amounts of real and personal property that can be exempted by the debtor from creditor action. The creditor should use caution before executing a judgment against any jointly owned property. This is especially true of marital property and assets in non-community property states where only one spouse is the debtor.
No
Yes. If the contractor has performed work on the house, and has not been paid, he may file a lien. Even if you truly don't owe the contractor any money, he may still file a lien; eventually, he will have to prove its validity in court or the lien is released automatically.
Yes, a contractor with a lien on a house may still be entitled to payment even if the bank takes back the house from the builder. The lien gives the contractor a legal claim against the property for unpaid work, and they could potentially recover their payment through the foreclosure process. However, the contractor's ability to be paid depends on the priority of the lien and the specific circumstances of the foreclosure. It’s advisable for contractors to consult legal counsel to understand their rights in such situations.
Yes. It is important to get original lien waivers each time you pay your contractor (do not give a check in exchange for a promise of a waiver). A waiver is a receipt of your payment and it is legal documentation that your contractor has paid the subcontractor or supplier. The waiver prevents the contractor and subcontractor from from liening your property for that amount of the payment on that subcontract. Partial lien waivers should detail the type of work done, the name and address of the subcontractor, the total amount of the subcontract, the amount paid to date, the amount of the current payment made, and the balance to be paid. At the end of the project, it is equally important to get final waivers of lien, as well.
If it's anything like NY, you've got to take the contractor to court to have a lien granted. I'd also file one against the property the house sits on. That way it can't be sold without you being paid.
No. "Self-help" is not appropriate here. The contractor should file a suit for the balance owed. Sometimes the contractor is able to put a lien on the property to ensure that they will get paid.
Unpaid invoices are open invoices that are overdue. This means that a customer has not yet paid the amount owed and the deadline on the invoice has expired
Yes. You should have requested a release signed by each sub before you paid the builder. It's a system that sucks, but as a sub it's the only thing we can do to get paid.
an unpaid invoice is a bill or statement issued by a company to a customer for goods or services provided that has not been paid by the due date.
The business can put a lien on the property. Builders I work for make me get Lien Waivers signed from my distributors to assure I have paid them. Depending on the state the project was completed in & when, you may be able to file a mechanics lien to secure payment. Check out National Lien & Bond Claim Systems for more information.
A subcontractor can hire another subcontractor but can only put a lien on the property if the original subcontractor isn't paid. The lien can also be placed if the second subcontractor was not paid because of the original subcontractor was not paid. The replacement of the second subcontractor is not grounds for a lien.
How you are paid does not determine whether you are a contractor. If you are properly an independent contractor, you can be paid on a 1099.