Mechanics Lien-Pennsylvania

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circuit1

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Hi, I own my home outright, no mortgage, and recently had a cement driveway installed. The work was completed and I paid the contractor. Today I received a certified letter from the cement company informing me that they were not paid and that they will be filing a lien on my home if I do not pay them for the cement, $806.00.

My question is what recourse do I have? Also, if they do file a lien what does that mean, can they can foreclose on my house or ruin my credit.

I don't plan on moving so what happens if I just let this go?

Thanks in advance for any advice. I would hire an attorney but that will probably cost more than the lien.

Greg
 
Having a completely paid off house is one of the most dangerous things in the world to do and this is the reason. A mechanic's lien is a placeholder. They can put a lien on your house, which will not affect your credit, for work performed on the property. Depending on the jurisdiction they have up to 1 year to sue you for what they say you owe. If they prevail in court the mechanic's lien becomes a fi faria or what we call a fi fa. A fi fa is a judgment lien that sits out their and attaches to anything you own in the county where it is filed.

If they have a fi fa and your house is paid off, they can SELL YOUR HOUSE to pay off the lien. It won't effect your credit but it will change your address. If a child falls down in your driveway and is seriously hurt and gets a $50,000 judgment against you that will go against your house and you can lose your house. I would much rather you had a mortgage, with all the money that you have to pay it off sitting in some retirement account that can't be attached.

If you already paid the company then get your proof together and contact them. It may be a mistake. If they persist, let them sue you and take your proof to court. Assuming you paid and have your proof they will lose the suit and all will be ok. If not, you will lose and then you need to pay the $800 before they sell your house.
 
Thanks for the reply. I already paid the contractor, however I have spoken to the cement company and they have not been paid by the contractor.

I have tried to contact the contractor repeatedly, however he has not responded.

At this point, is there much that I can do? I can't belive that they can foreclose on my house for $800.00, considering that I have already paid the contractor for the job.

This seems unfair, where is the contractors responsibility in this and why aren't they going after him?
 
You better ABSOLUTELY believe they can foreclose on your house for $800 because they can. I spent 15 years in the Mortgage industry, worked as a title attorney, and this isn't something I'm guessing at. Ignore this lien at your peril.

When a house is being built the mortgage companies require subcontractor releases for just this reason. I once saw a $750k house get 15 days from being sold on the courthouse steps because of a $1200 lien to a roofer.

It's not fair, I will grant you that. Your contractor stole from you. There may be criminal charges as well as civil liability. They came after you because you have the tangible asset that is paid off. The contractor is probably broke. Contact the contractor and raise hell. Tell them you are going to the police. If that doesn't work sue them in small claims court and tell everyone you know.

In the end you might need to pay that lien. I'm sorry but that's the case.
 
Ok that is where I am confused.

You hear about homes all the time that have liens on them, that's why people do a title search before buying a home. If the person that filed the lien in the first place can easily have the house sold to get paid, then why aren't they doing that? Why are they leaving the liens on them if it easy enough to have the house foreclosed on and sold to get their money?
 
That's why I said having your house paid off is dangerous. A lien, even a small one, that is in first position controls the sale of the house. If you had a $100k first mortgage on the house and $20k in equity then a $800 lien would not foreclose. They would have to pay of the first lien first and there would likely be no money left for them.

Does that make more sense? I know it's not fair, the contractor ROBBED you straight up no questions asked. Go get him.
 
Yea he sure did rob me. Now to foreclose on my house, to they have to take me to court first. Or can they just proceed with selling the house without any further court action?

Just wondering what it is going to cost them to have my home foreclosed on?

Seems like a lot of trouble for $800.00. BTW, thanks for all your help, your the best attorney I have ever had.:)
 
Thank you for the compliment but I am not currently on the bar anywhere.

They can't foreclose on you. Remember, i said it is a placeholder. Each jurisdiction can be different and I haven't looked it up in PA but they have 90 days or so to place the lien, then 12 months or so to SUE over the lien, then IF THEY get a Judgment and you won't pay the judgment they can proceed to take the property to satisfy the judgment.

Good luck.
 
Well that makes me feel a little better. Of course if push comes to shove I will pay it.

Thanks again for all of your help and taking time to answer all of my questions. Someone with your knowledge, experience, and personality would be a dream lawyer in my opinion.:)
 
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