How to get a Lien for Work owed on a House that is in Foreclosure
Full Question:
My husband and I acted as the contractor on a house for repairs and improvements before the house went on the market. The home owner agreed fully with the work to be performed and now, months later, has not disagreement with the work or the costs. We paid for all expenses and subcontractors, which we have done. The agreement was for $10,000 to pay for our labor and services and furthermore to wait until the house sold to recoup our expenses as well as getting paid for the $10K. No problem with the homeowner (who had moved out of the house
before work began).
The problem is the homeowner had a reverse mortgage. Her husband, with brain cancer, had become violent and dangerous, causing her to move out of the house. A few months later, he was put into a nursing home. It was at that time that we struck the deal. A few months later, after work was completed and the house had been on the market, the husband died. Because the mortgage is a reverse mortgage, the homeowner must reside on the property, which she no longer does. It's been unbelievable that the house has been on the market 9 months but the economy has been a factor as well as the fact that the house is
in small cul-de-sace of 35 homes and it is the highest per square foot house there. The appraisal came in at what the list price is on the house. It just has not sold. Now the mortgage company has given 30-day notice to the homeowner that they are going to foreclose. We need to be sure that we will be reimbursed for the $40k we've put into the house as well as the $10K the homeowner agreed to pay us at closing. The payoff is about $125K and the list price is $190K. The homeowner won't make any money but the homeowner won't have to take money to closing which is what she was facing had she not performed the work on the property. We did not file the contract with the county prior to the work being done. This is the first time we've done work as a contractor. Who would have thought such a fabulous flip would still be unsold after 9 months. At the time, we did not know about the reverse mortgage and therefore, did not know it was possible the house would be foreclosed upon.
Can we put a mechanic's lien on the property in the next couple of weeks prior to the foreclosure?
03/12/2009 |
Category: Real Property ยป Liens |
State: Texas |
#15579
Answer:
I am prohibited from giving a legal opinion. If you have met the conditions for filing a mechanic's lien, it is possible to file a mechanics lien despite the pending foreclosure of the home. If the property was a homestead at the time of contracting, the contract is required to be filed with the county recorder in order to enforce a mechanic's lien. A disclosure statement is also required to be provided to the owner when residential construction work is performed. Please see the information in the statutes and links below to determine applicability.