All Forum Posts by: Lane Forhetz

@Jonathan A.

The lawyer that assisted me was, Joseph C. Blanner with McCarthy, Leonard & Kaemmerer, L.C.

The contractor that caused all these issues was Jim Grier with Express Plumbing, LLC.

@Erin Elam and @Bo S. Yes, that is correct, I used 2 loans for $0 out of pocket initially. And yes, since I got the property at a price that was under 75% ARV even with rehab, I was able to work in the interest and fees into my 75% mortgage loan from the bank when I refinanced the property.

The gap lender I used is no longer doing gap loans - too high of a risk for not much profit was their reasoning (I was always quick to pay them back - I guess others weren't). Their fees for me came to about 10% on ~$5,000. The HML I use is Longhorn Investments. Their rates starting out are 4pts and 15% annually over a 6-month loan with no prepay penalties - I think those are their current rates, but get a quote from them if they do loans in your state. They lower your rates the more you use them.

Now it is important to note, that in my market at least, properties that fit these criteria are now anomalies. Over 2018, I was not able to purchase 1 house that fit this mold via the MLS, Zillow, or wholesalers. The only way to get properties like this in St. Louis is through direct to seller marketing - at least until this market settles down.

It is also important to note that none of the properties I purchased ended up being $0 out of pocket when I refinanced. I averaged about $3-$5k out of pocket with a 75% loan. I was ok with this because annual rent would cover that in the first year or 2. It is possible to use this process to have $0 out of pocket, however, those properties are hard to find.

Good luck!

Thanks for all the suggestions and support. Just wanted to update with the closure of this issue. 

I consulted a really good attorney who wrote a very strongly worded demand letter. This letter caused the contractor to come to his senses, take payment, and release the lien. 

Again, I appreciate the support!

@Andrew B., that’s what I thought but the buyer’s title company is not allowing me to go that route. My title company is fine with it but I foolishly didn’t have the buyer close at my title company. 

@Caleb Heimsoth , I've never heard of that before. The lien waiver essentially says the owner has paid you in full and doesn't owe you any money. If I were a contractor, I wouldn't sign a lien waiver at the start of a job.

I delayed updating on the situation for hopes of some good news. Unfortunately, that is not the case. 

I was able to convince the contractor to meet me if I brought a cashier's check. Upon meeting, he would not sign the lien waiver but insisted on getting the check. I had a witness with me, who could not believe the outcome.

The next day I went to the circuit court to begin the bonding process, per @Donald S. 's advice. I was told I had to file a motion for a hearing. At the hearing, the judge was not familiar with the statute and told me I had to get a lawyer to proceed. 

I am now working with both title companies, as the house is now under contract, to act as an arbitrator to get the lien waiver. The buyer's title company has declined to escrow the amount, even with insurance, to mitigate the lien and close the sale.

At this point, if the title company arbitration is not successful, I will be forced to be litigious and file a suit for an unlawful lien. I really would rather avoid this, as it encumbers the sale of the home which is set to close 12/3/18.

Thank you for your reply @Aaron Poling . I am embarking on that track now, I was hoping I might be able to avoid it.

Hello All,

I am in need of some assistance in figuring out this absurd issue. I had a plumbing contractor do some work for me and paid him 50% for 50% completion. He continued the work another 25% and didn't do a good job. He asked for the other 50% before the work was completed. I declined because the work was not done and asked for some things to be fixed. This set him off on a rageful tirade and began to harass me via phone calls and text messages. Seeing this and wanting to avoid further issues, I told him I would pay him in full but that I needed a lien waiver for payment, but he declined. 

He has now put a lien on my property for the 50% that hasn't been paid yet and still refuses to give me a lien waiver. I asked my title company if I can pay at closing to which they agreed but would still need a lien waiver. I communicated this with the contractor and he stated (in a text which I have) "You can't sell the house, I am good". In other words, he doesn't need the money and it's worth it to screw me.

I am hoping someone might have some insight into what I can do about this. I consulted an attorney and was told I would have legal recourse but it would take 6 months and cost a great deal. The amount is relatively small, $1,870. I can't afford to hold this house for 6 months, it should sell in the next 45 to 60 days (it's going on the market today).

I live in the state of Missouri and have filed a NOIS (Notice of Intended Sale).

Thank you for your assistance!

@Michael Cohen, thanks for that! He for sure said it was a Fannie/Freddie requirement. I appreciate the information, that helps me a lot. 

@Michael Cohen, I'm more than happy to do so, however I want to ensure that I won't end up with the same situation at the next lender. Loan officers don't have a squeaky clean record with me and their promises...

Can you confirm this is 100% a lender fee and not a Fannie/Freddie Requirement?