Rehabbing & House Flipping
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply

Legal question on Lien
After our first flip (in Central Illinois), the contractor submitted an exorbitant bill and then a Mechanics Lien. I went the legal route and hired an Attorney. Now on Aug 1st my attorney submitted a Motion to Dismiss that was accepted by the judge with the following stipulation.
"Plaintiff is granted 30 days leave to file amended complaint to add as additional Defendants the current owner and mortgage holder of the subject premises and to add additional factual allegation in response to Defendants’ MTD. Defendants to answer or otherwise plead within 21 days thereafter."
I was able to sell the house but 2 times the Lien amount is held in escrow till this is resolved. Now according to the above order by the judge, the 30 days have past and no amended complaint was submitted. So it is my belief that my attorney should submit to the judge the final order to Dismiss. But he's trying to tell me I still have to wait because they could still submit an amendment even though the 30 days are past. But he cannot, or will not, tell me how long we have to wait.
Does this sound right to you? That an Amendment can still be submitted. And that I have to wait till who knows when?
Thanks for any isnsight. Bill
Most Popular Reply

So what have you learned? Maybe the following:
1. All contractors must submit written bids for jobs.
2. Contracts have a completion date.
3. Failure to finish on time results in contractor's penalty or reduction in payment.
4. Get a mechanic's lien waiver before issuing final payment.
There are great contractors out there. There are also scam artists. Always get three bids from contractors recommended by other members in your local REIA.