housingprovider
Junior Member
What is the name of your state (only U.S. law)? Florida
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?
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?