[booter1]

As a former law enforcement officer at municipal and federal level this FOS program is unacceptable.
Evidence of that is LASD shutting it down when news became public. The public needs to trust that hiring is on qualifications and merit- not who has friends in high places.
There are plenty of qualified candidates.
“light of day” transparency should be the goal.

[booter1]

Mechanics Lien-update

Here is the latest..
Had two suppliers that had not been paid and I chose to pay them off to avoid liens on my home. Put some pressure on contractor-he was able to reimburse me for one lien for around $3000. Checks cleared-yeah!
I put in claim against his bond for second lien of $13,500. His bond was $12,500 which is the standard size bond for contractors. I emailed all docs to Insurance company and they take the first 15 days to review my paperwork and contact the contractor to hear their side of the story. If no other claims filed in the next 30 days then Insurance company will send me the check for $12,500.
Lesson learned- at the first sign of an issue-immediately file a claim with the Insurance company and pray no other claims are filed within the 45 day period. If other valid claims are filed the proceeds will be distributed pro-rats. If a claim is filed after you receive the check- to bad for the other claimants as bond is exhausted. Thanks to all of you who helped guide me through this. If you have a job bigger than $12,500, I suggest either paying the suppliers/subs directly or getting an Unconditional Release of Lien from every sub or supplier or you bear the risk.
Over

[booter1]

[quote=booter1]Hi Piggs, wanted to provide an update in the hope that someone else may benefit from the information..

First of all, thanks to all the helpful advice you all provided and thanks BG for the attorney referral. Very helpful- I did speak with the attorney.

Contractor is paying #2 supplier-$3500.

I placed claim with Insurance company today against conractor’s bond which is $12,500. Like UCgal said- it is first come first serve.This claim was for supplier #2 that was owed $13,500.
I am told this seemingly low bond amount is typical so keep that in mind if undertaking larger job. Insurance company tells me they will contact me within fifteen days and resolve within 45 days. You can file a claim without having to go to arbitration or court.
I will still be owed about $1000 and if contractor does not pay either go to arbitration or small claims court.

Things I learned….

1) As was mentioned by others, get suppliers to sign off on Unconditional Release/waiver and call them when you get prelim notice to confirm they have been paid before you give the contractor money. Or pay suppliers directly….

2) Suppliers/subs are only legally required to send you the prelim notice. After that, they can file a lien on your home without telling you or giving you advance notice of lien. some do send the homeowner of an “intent to lien” letter to homeowner but legally they are not required to…

3)Most contracts don’t have attorney’s fees in the contract language so you are on the hook for all your attorney’s fees if you litigate and if you go to arbitration the costs are split so either way it will cost you some money.

4) Paying off the supplier/lien (which I did in my case because I didn’t want to screw up the refi) does not give up any of your rights in any way.

5) I talked to both suppliers and both said that the last couple of years has seen a significant increase in contractors not paying suppliers and homeowners are now calling suppliers when they get prelim notices which did not happen before…

6) I asked both suppliers if they would actually initiate foreclosure proceedings on these type of liens. Basically, they said it depends on the situation. First they file the lien and then after a period of time go after the contractor’s bond.
If the bill exceeds the claim amount (either due to the bond maximum or because others also filed claims) then the supplier has to evaluate whether it is worth it to go after the homeowner.

7) I have not filed a complaint against contractor’s license with CSLB. Focused on recovering the money owed right now. Attorney’s view was to create as much pain for contractor (he used slightly different words) to get them to pay.
I will wait to see what happens with the bond payoff first and then decide.

Thanks again.[/quote]

[booter1]

Hi Piggs, wanted to provide an update in the hope that someone else may benefit from the information..

First of all, thanks to all the helpful advice you all provided and thanks BG for the attorney referral. Very helpful- I did speak with the attorney.

Contractor is paying #2 supplier-$3500.

I placed claim with Insurance company today against conractor’s bond which is $12,500. Like UCgal said- it is first come first serve.This claim was for supplier #2 that was owed $13,500.
I am told this bond amount is typical so keep that in mind if undertaking larger job. Insurance company tells me they will contact me within fifteen days and resolve within 45 days. You can file a claim without having to go to arbitration or court.
I will still be owed about $1000 and if contractor does not pay either go to arbitration or small claims court.

Things I learned….

1) As was mentioned by others, get suppliers to sign off on Unconditional Release/waiver and call them when you get prelim notice to confirm they have been paid before you give the contractor money. Or pay suppliers directly….

2) Suppliers/subs are only legally required to send you the prelim notice. After that, hey can file a lien on your home without telling you or giving you advance notice of lien. some do but they are not required to…

3)Most contracts don’t have attorney’s fees in the language so you are on the hook for all your attorney’s fees if you litigate and if you go to arbitration the costs are split so either way it will cost you some money.

4) Paying off the supplier (which i did in my case because i didn’t want to screw up the refi) does not give up any of your rights in any way.

5) I talked to both suppliers and both said that the last couple of years has seen a significant increase in contractors not paying suppliers and homewoners are now calling suppliers when they get prelim notices which did not happen before…

6) I asked both suppliers if they would actually initiate foreclosure proceedings on these type of liens. Basically, they said it depends on the situation. First they file the lien and then after a period of time go after the contractor’s bond.
If the bill exceeds the claim amount (either due to the bond maximum or because others also filed claims) then the supplier has to evaluate whether it is worth it to go after the homeowner.

7) I have not filed a complain against contractor’s license with CSLB.Focused on recovering the money owed right now. Attorney’s view was to create as much pain for contractor (he used slightly different words) to get them to pay.
I will wait to see what happens with the bond payoff first and then decide.

Thanks again.

[booter1]

Thx Everyone- BG was kind enough to provide an attorney referral so I will let everyone know what happens.

Suppliers did send prelim notices within timeframes required. I was under the assumption that the Unconditional Release/Waiver which I received with final payment to contractor would protect me. As has been pointed out, this is true only if the subs/suppliers sign the waiver, not just the contractor so painful lesson learned for me.

That said, the contractor agrees I have paid in full, said he intends to pay me when the next couple of jobs finish. I said, “not good enough.”

I don’t want a lien on the home so will check with attorney on paying the suppliers and going after the contractor. FWIW, I asked the contractor what happened to the money we paid him for lumber and concrete and he said it went to the subsequent job and that owner is now refusing to pay him. I said was very frustrated to be in this position. His solution was just to let the lien stay on the home for 60 days until he closes some jobs out and gets the money. Told him no deal.

Contractor’s bond is $12,500 which won’t cover full amount (approx $17000) but it’s a start. Thx.

[booter1]

Thx BG-sent you pm.

[booter1]

Thx BG-yes I did check his records and history in Riverside and SD county and came back clean and bonding and licensing looked fine

home is in Riverside County.

[booter1]

Thanks Svelte,
I guess I am still struggling with what is the point of the signed Unconditional Release from the contractor if claimants can still put a lien on my home?

If we do nothing and let the lien sit on the home, since we just moved in a few months ago and don’t plan on moving for several years, what happens then?

I am also trying to figure out what I could have done differently..since all work was completed to our satisfaction I then made the final payment and received the release…should I have done it differently? Contractor had solid references and no prior problems that I could find during the due diligence process.
Thx.

[booter1]

pri-dk,

Thanks but why do you say that? Since I have a release isn’t this between him and the suppliers?

I am certainly not an attorney but I don’t understand how the supplier can put a lien on my home with a release- shouldn’t they be going after him first?

Mark

[booter1]

Thanks SDR- what is your e-mail?

[booter1]

Thanks SDR- what is your e-mail?

[booter1]

Thanks SDR- what is your e-mail?

[booter1]

Thanks SDR- what is your e-mail?

[booter1]

Thanks SDR- what is your e-mail?

[booter1]

I Know this might be slightly OT but does anyone know how to see amount of outstanding loans on property in Riverside County? Thx

[Author]

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