I filed a lien on level set for a project in Colorado. No payment has been received by the general contractor makers line. When will the lien take affect?
The lien is effect the moment it is filed with the applicable clerk and recorder. Merely filing a lien does not guarantee payment. Unless this is a commercial project, most liens do not automatically result in payment.
If you want to enforce the lien (called lien foreclosure), the lawsuit must be filed within six months after the later of the following:(1) the last date that work was performed; (2) the last date that materials were furnished; or (3) the date that the building or improvement on the property was completed. This can be a complicated calculation and must be determined exactly as the application of the timeline is strict and you have the burden of proving the suit was timely filed. Your attorney would also file a lis pendens.
Whether it makes sense to foreclose depends, in part, on the
amount due. If the amount is $10,000 or less, foreclosure may not make
financial sense given the costs for the litigation guarantee, service on all
the possible parties, and other factors. If the amount due is $8500, it may
make the most sense to proceed in small claims.
As noted, you are not required to foreclose. You can sue in and
then try to win that suit and proceed to try to collect. A foreclosure action
is not the only means to try to collect the amount due.
Lawsuits, other than small claims, are complicated and time-consuming
process that require getting at least limited legal assistance.
If you cannot afford a full representation, you should
contact an attorney and consider having a limited representation. In this
representation, the attorney provides specified services and they do not enter
as the attorney of record in the case. This is normally less expensive and
requires a smaller retainer. Our office and others offer limited
representation. This is a brief overview https://bit.ly/3xY5VJS.
Reach out to attorneys ASAP to help you get started.
lawsuit in the applicable district court to foreclose on the lien.
If you properly and timely sent the notice and the lien you intended to file 10 days prior to filing the lien, then filed the lien in the property records, the lien is effective. The next step is to timely start the lawsuit to foreclose on the lien.