Lis Pendens and Perfection Lawsuits

 

The Lien Programs® do not have forms or information for the last part of the Mechanic’s Lien (Private Works) or Bond Claim (Public Works) processes – Perfection of the claims, a process we strongly feel should be handled by a professional collection agency, lien service and attorney.  In the Private Work jobs this involves filing a Lis Pendens, a document that is filed with the county clerk to ‘cloud’ the title (makes the title known to be subject to a lien) when you are moving for a perfection or foreclosure lawsuit.  The problem with a lis pendens is that while it immediately clouds the perfection lawsuit must be in the process of being filed or filed, or you are in violation of state law, and can be both civilly and criminally liable in some states.  Because the temptation to use the lis pendens is there, we do not include it.

Perfection for both type of works also involves the filing of the perfection lawsuit to make your lien on a property (Private Works) or bond claim (Public Works) permanent.  In the case of the Private Work claim the lien becomes permanently attached, until paid, and allows you to foreclose on the property if necessary.  In the case of the Public Work claim the bond company is ordered to pay over your loss, plus your costs in some cases.  Again, this involves a complex lawsuit, and should be handled by an attorney, or the attorney of a collection agency or lien service, and so the forms are not included in the Lien Programs®.

FWM Software maintains a list of collection agencies, attorneys and lien services that handle the perfection of Mechanic’s Liens and Bond Claims.  See the Main Menu Help subsection, Help, Tips and Hints, Perfecting Lien Claims for more information.

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