Sold a House w/ Mechanic's Lien

[Eric Tomlinson]

So I obviously hired the wrong GC on a flip.

I learned a lot from a bad experience but the saga still goes on. I had the cabinet guy come by one day when I was there and said he wanted to be paid. I didn't know him or hire him so I called GC. GC came over and had a verbal fight w/ him telling him he had been paid. The cabinet guy agreed he was paid partially in cash (you know you hired the wrong guy when he deals in cash!). The GC paid him some in cash and most by check.

Cabinet man said that what the GC paid him for my job he applied to past balances from other jobs he did for the GC. I tell the cabinet man that's not my fault, he lien's the house and won't negotiate except for full price.

I then tell the title co what has happened and they say they will insure around the lien if I escrow 150% of the amount on the lien.

Has anyone heard of this or had it happen to them? What will be the next step? I talked to an atty and he said it would prob be 2000 bucks for him to sue the cabinet man for a release! The title co says that cabinet man has 2 yrs, I think, to sue for the money.

Moral of this saga is to get lien releases not only from GC, which I did, but from any subs that do work on the house!

Any insight?

Eric