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I need to file a mechanics lien on a property that might go on foreclosure and i need to stop it the sale

CaliforniaForeclosure

I paid all contractor's for my sister's property, now is going on foreclosure need to file a mechanic lien follow by a lis pendes to stop sale, can you help me?

4 replies

Sep 19, 2022
I would record the mechanic’s lien (how much) and then obtain a property profile to determine how much equity is in the property, then file suit in court to foreclose on the mechanic’s lien AND obtain a stay of the mortgage foreclosure. Then negotiate with the mortgage company for payment to release the stay.
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Sep 19, 2022

You are not eligible to record a mechanics lien against the Property unless you performed work to improve the property and had a license to do so. While you could argue that you were acting as a GC in hiring these subcontractors, this argument would only be valid if you have a contractor's license as otherwise you would be considered an unlicensed contractor and would be barred from recovering compensation under Business and Professions code section 7031. Based on the limited facts presented, it would not make sense to record a mechanic’s lien or attempt foreclose on a mechanic’s lien in your situation – given the likely strong defenses to any such claim. 

The money you paid on her sister's behalf is an unsecured loan to your sister. If your sister is willing to cooperate, you could secure that loan by executing a note and recording a deed of trust on the property. But this deed of trust will only be valuable if there is sufficient equity in the property after the existing mortgage and any other debt already secured by the property.

If your sister is not cooperating, you still may be able to assert an equitable lien cause of action against the property based the money you advanced to your sister. This would be in the context of a lawsuit against your sister for the money which would include an equitable lien cause of action based on your financial contribution to the property. Whether or not this cause of action would ultimately be valid would depend on the specific facts of your case. But as an equitable lien cause of action affects title, if valid, this would allow you to record a notice of lis pendens. This notice of lis pendens would encourage but not guarantee resolution of your debt in escrow if the property is sold. 

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