Pomona California Complaint for Damages and Foreclosure of Mechanic's Lien

State:
California
City:
Pomona
Control #:
CA-01910BG
Format:
Word; 
Rich Text
Instant download

Description

The Mechanic's Lien remedy was created to ensure that a designer, contractor or supplier who contributes to a work of improvement will be paid; as his contribution increases the value of the improved property. Sometimes referred to as a Construction Lien, the Mechanic's Lien creates a security interest in real property for the benefit of those who have supplied labor or materials to improve that property.


Claimants are entitled to a Mechanic's Lien if:


1. The claimant contributed labor, services, equipment, or material to a work of improvement;

2. The work of improvement is permanent; and

3. The work was performed with consent of the owner or owner's agent ("agent" being one who has charge of the work of improvement or a portion of it, e.g. contractor, architect, etc.).

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FAQ

When a property gets foreclosed or goes bankrupt, all construction parties with a valid mechanics lien against the property may still recover payment through the proceeds of the foreclosure sale.

Following a first-mortgage foreclosure, all junior liens (including a second mortgage and any junior judgment liens) are extinguished, and the liens are removed from the property's title. But the second-mortgage debt and creditor's judgment remain, even though they're no longer attached to the foreclosed property.

California law requires that a lawsuit be filed to foreclose on a mechanic's lien within 90 days (Civil Code section 3144) after recording it. If the contractor fails to file a lawsuit to foreclose on that lien within 90 days, it is barred from recovering on that stale mechanic's lien.

Which of the following is an example of circumstances under which a mechanic's lien might not be enforced? If a contractor performs deficient work.

If the property owner still does not pay the contractor the amount stated in the Mechanics Lien, the contractor can file a court lawsuit to foreclose on the Mechanics Lien, provided that the lawsuit is filed within 90 days after recording the Mechanics Lien, otherwise, if the 90 days pass without filing the lawsuit,

After you file A California mechanics lien is only valid for 90 days. Unless it is extended, you will need to enforce your lien claim within this deadline.

Once a mechanic's lien is recorded, it attaches to your title and must be removed. As previously mentioned, if you recorded a Notice of Completion, a prime contractor has 60 days to record a lien while a subcontractor or materials supplier has 30 days to record a lien.

How long does a mechanics lien last in California? In California, it is required that a mechanics lien be enforced within 90 days from the date on which the lien was recorded. If this 90-day time period passes without an action being commenced to enforce the lien, the lien expires.

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Pomona California Complaint for Damages and Foreclosure of Mechanic's Lien