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cyrus
Some weirdo has taken it upon themselves to record a mechanics lien on a property we acquired at the foreclosure auction, a month after we recorded the new trustee's deed upon sale. We were in escrow when we found out about this. We are set to close now and 3 title co's are budging from insuring the prop. I sell as-is and this was supposed to be all-cash, but they have now acquired a loan and the lender and even the escrow claim they do not move forward ever without a title insurance.
It doesn't seem like anyone has done any work in the past few months on the property. Had they recorded before the trustee sale, they would have been wiped out, but recording after the property has been sold to someone else seems just crazy. The contractor has a website and an 800 number that dont get you to anywhere. What is the quickest way to close this escrow? An Indemnity company? An ex-parte hearing? Any attorney you may recommend for the job? Shouldn't as-is cover such issues? Next time I will add as-is, without any warrantees, guarantees or insurance.
It is interesting to read about the various deadlines that exist for a contractor to file anything.
[saclaw.org]
Cyrus,
Your fact pattern makes me suspicious that someone is trying to fraudulently qualify to get any remaining overbid that might exist from the trustee’s sale of the 1st trust deed or the are trying to unlawfully bollocks up the title of the property afterwards to force the new owner to pay for them to remove the spurious mechanic’s lien.
#1. I don’t think any bonding company would be willing to bond around the mechanic’s lien. If they ultimately would do it you’re looking at a prolonged time that would pass before they’d do it.
#2. I don’t think this matter would qualify for an ex-parte hearing by a judge.
#3. You need an attorney who has experience dealing with mechanic’s liens. I’d contact the legal department of your local title companies for some local referrals.
#4. Declaring that you are selling the property “as is”, etc. will not absolve you from fully disclosing any and all negative conditions affecting the property or its condition of title.
IMHO you need an attorney to file a ‘quiet title” action in court to legally determine the invalidity of the mechanic’s lien and expunge it from the title to your property. It would probably cost you about $6K to $8K and take at least 6 months to do.
