Yes, the contractor has 90 days to foreclose, but he will never file, not for $550. It is a very costly process and no attorney would take that case on a contingency basis. Otherwise, the contractor will have to pay much more than $550. Plus the lien is bogus – you have nothing to afraid of. After 90 days you can file a petition to expunge the lien. In theory, you’ll be entitled to up to $2000 in attorney costs, if you win and you will win, if lien is not removed by the court date. But, as I said above, if the contractor is smart enough he will remove the lien a few days before the court date, file lien release papers with the court and you’ll have no case, because there will be noting to expunge. Right after the court date he’ll file the lien again.
In our case , the contractor was dumb enough to not remove the lien by the court date and we’ve got our $2000 in attorney costs judgment, witch we traded for the a court order, which prohibit him to place any additional liens on our house – otherwise $2000 would stand.
If that line bothers you, settle it for less, or let 90 days to pass, ignore it and wait until you sell or refinance your house. If you do it in a few years from now, and the contractor decides to file the lien again after you removed it, you’ll have better perjury case, than now.
I can help research what you need to do. It may require hiring an attorney – but it should be straightforward (so less than $200) if it’s as you describe.
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