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Can a lien "hurt" me?

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denman

Junior Member
What is the name of your state? Iowa

Last October (2005) I closed on a house built with a General Contractor. 9 months later, I received a bill for $2800 with regards to fill dirt that was brought in during construction. The original contract states that I will pay for all fill dirt hauled in, and the general contractor will have all bills known to me prior to closing (unless noted in writing). The contractor knew about this bill prior to closing, but waited 9 months before billing me. I still agreed to pay it, but on a $100/month payment plan. The contractor agreed (verbally).
The first month we had a misunderstanding on whether or not he was to invoice me monthly, but we cleared that up.
The second month he wanted it known that missed payment would result in payment in full being required, and that 8% interest would begin if I missed a payment. Neither of these items were discussed at the time we verbally agreed to the payment plan.
Now, just prior to the 3rd months payment, the contractor sent me a letter stating he wants payment in full, or he will take out a mechanic's lien againt me. Over the past 2+ months, the contractor and I have corresponded enough that the terms of our verbal agreement are clearly spelled out in letters from the contractor.

I have several questions...

1) Since the initial agreement was verbal, can the contractor be held to the contract terms, since they are now in writting by his own hand?

2) The contractor has already accepted 2 months payment, is the contract binding?

3) Can he still put a lien on my house?

4) How can I stop him from putting a lien on my house?

5) Does the lien force me to pay in full, or is he just holding the house as collateral while the terms of the contract play out?
 


HappyHusband

Senior Member
What is the name of your state? Iowa

Last October (2005) I closed on a house built with a General Contractor. 9 months later, I received a bill for $2800 with regards to fill dirt that was brought in during construction. The original contract states that I will pay for all fill dirt hauled in, and the general contractor will have all bills known to me prior to closing (unless noted in writing). The contractor knew about this bill prior to closing, but waited 9 months before billing me. I still agreed to pay it, but on a $100/month payment plan. The contractor agreed (verbally).
The first month we had a misunderstanding on whether or not he was to invoice me monthly, but we cleared that up.
The second month he wanted it known that missed payment would result in payment in full being required, and that 8% interest would begin if I missed a payment. Neither of these items were discussed at the time we verbally agreed to the payment plan.
Now, just prior to the 3rd months payment, the contractor sent me a letter stating he wants payment in full, or he will take out a mechanic's lien againt me. Over the past 2+ months, the contractor and I have corresponded enough that the terms of our verbal agreement are clearly spelled out in letters from the contractor.

I have several questions...

1) Since the initial agreement was verbal, can the contractor be held to the contract terms, since they are now in writting by his own hand?

2) The contractor has already accepted 2 months payment, is the contract binding?

3) Can he still put a lien on my house?

4) How can I stop him from putting a lien on my house?

5) Does the lien force me to pay in full, or is he just holding the house as collateral while the terms of the contract play out?
1) Since the initial agreement was verbal, can the contractor be held to the contract terms, since they are now in writting by his own hand?
Yes, if a court decides that the contract is valid, which they probably would.

2) The contractor has already accepted 2 months payment, is the contract binding?
The contract may be binding whether or not you have paid anything. Acceptance of 2 month's payments could show that ya'll intended to pay in installments.

3) Can he still put a lien on my house?
Yes.

4) How can I stop him from putting a lien on my house?
Pay him the full amount owed, AND get a lien release from him for the full amount BEFORE you tender payment.

5) Does the lien force me to pay in full, or is he just holding the house as collateral while the terms of the contract play out?
Yes.
 

denman

Junior Member
I need to clarify question #5: Can the lien force me to make one lump sum payment?

If the contractor takes a lien against my house, and we follow the payment plan to the end, how does the lien get removed?

Thanks
 

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