We filed a lien that was delivered today. They called us telling us that they would be making a payment issued at the end of the week with the balance in a couple weeks there after. However, they stated that we needed to put a hold on the lien as it would stall the payment. Is this true? I don't want to put a hold on the lien until payment is in the bank as they have made several promises to make payment but haven't followed through.
Another approach would be to have an escrow agreement with the title company handling payments (assuming there is one).
Under such an agreement, you would execute and deliver a discharge of your construction lien to the title company, which would hold it in escrow until your customer deposits the money it owes you with the title company. Or if the project is funded by a construction loan, you would be paid out of the next draw. Once the conditions of the escrow agreement are met (you receive your money), the title company is allowed to record the discharge of lien.