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J

jem

Guest
We are just finishing the building of our new home. The bank did their final inspection and was to issue us our last check when they called us with some surprising news. It seems ther is a lein on our house from the home center where the contractor purchased the buildingg materials.After contacting the builder, we find out he is filing chapter 7 bankrupcy. Afew days later, I recieved a call from the carpet suplier stating that he has not been paid. we live in M.A. Can you please tell me where to look to find the info about leins in the state of M.A.? We have not been able to get an amt. of the lein from the home center or their lawyer. Also, how do we find out if other sub-contractors have not been paid? What is a notice of completion and where do we file it? Lastly, if the contactor (who was working on 2 other homes at the time) is going chapter 7, do we have any hope at all of not having to pay twice? thank you for your time!
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by jem:
We are just finishing the building of our new home. The bank did their final inspection and was to issue us our last check when they called us with some surprising news. It seems ther is a lein on our house from the home center where the contractor purchased the buildingg materials.After contacting the builder, we find out he is filing chapter 7 bankrupcy. Afew days later, I recieved a call from the carpet suplier stating that he has not been paid. we live in M.A. Can you please tell me where to look to find the info about leins in the state of M.A.? We have not been able to get an amt. of the lein from the home center or their lawyer. Also, how do we find out if other sub-contractors have not been paid? What is a notice of completion and where do we file it? Lastly, if the contactor (who was working on 2 other homes at the time) is going chapter 7, do we have any hope at all of not having to pay twice? thank you for your time!<HR></BLOCKQUOTE>

You need to hire a real estate or construction attorney right away as there are various issues to settle. This is not a simple situation.

The legal notice department of your local newspaper should be able to advise you on publishing the Notice of Completion. Publication of this Notice starts the clock and the statutes of limitations on the filing of mechanics and materialmens liens.

If you have a list of all the licensed and unlicensed subcontractors and building material suppliers, call each one to see if they got paid current. You may be in for some more surprising news. Don't forget to talk to all design consultants also including the surveyor, soils engineer, architect and engineers (civil, structural, mechanical, electrical etc.) as these individuals also have lien rights.

You may have to pay twice. If the contractor was licensed, there may be a way to file a claim with the State if there is a Contractors Recovery Fund. Some States allow cases such as the contractor filing BK in order to qualify for some relief for the consumer. Did the contractor have current insurance and bonding? These are some of the questions that your attorney will ask.

This may be a time consuming draw out process so be patient. In the meantime, your lender will want to know the status at certain milestones. I have represented many homeowners who have been in this similar situation. From experience, it is no carnival. Circus maybe. Expect the best but prepare for the worst. You will be living a construction soap opera by day and a nightmare by evening. Just remember that this scenario is not permanent and that there is a light at the end of the tunnel.

[This message has been edited by HomeGuru (edited August 07, 2000).]
 

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