Florida | Construction Law
Legal Question
If the incorporated private lender owes subcontractors and is foreclosing on me, can the subs file mechanic's liens AFTER the foreclosure and/or after I give a deed in lieu? The Lender puts the properties in the name of his friend's LLC.
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I bought a house to rehab with financing from an incorporated local private lender. He is responsible for paying the subs directly.
The lender has filed foreclosure against me and the project has stalled. The lender seems willing to accept a deed in lieu of foreclosure; however, when he does this, he puts the deed in the name of his friend's LLC.
There are four vendors who need payment totaling roughly $5k. I want to make sure they get paid. If I advise them to file mechanic's liens now, the lender will simply forgo the deeds in lieu and proceed to foreclosure, wiping out the liens since the mortgage is currently upside down.
However, if I give him the deeds in lieu, can the vendors file mechanic's liens after ownership has transferred to a supposedly unrelated third party?
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Legal Answer
Probably not so that it would attach to a new legitimate purchaser unless filed before the transfer.
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Wagner, Vaughan & McLaughlin, P.A. 601 Bayshore Boulevard; Suite 910 Tampa, FL 33606
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