Legal Question in Real Estate Law in California
16 year old lein on a home. Do I have to pay it?
My in-laws have a lein on their home from an addition(family room) that was completed more than 16 years ago in Los Angeles. Now they want to sell. The company that originally did the work has since gone out of business and their assets have been taken over by another company(not sure which company filed for the lein but i know it was 16 years ago). They have not been to court or been served any legal papers for at least 15 years, but now the company wants 55k on a bill that was originally about 10k.
I say hire a lawyer and fight back.
What are their options/rights????
4 Answers from Attorneys
Re: 16 year old lein on a home. Do I have to pay it?
Is the lien a result of a judgment or just a mechanics lien? If it is a result of a judgment was the judgment renewed? We will be glad to help you if we learn the answers to these questions and see a copy of the lien.
Re: 16 year old lein on a home. Do I have to pay it?
Are you referring to a mechanic's lien? A lawsuit must be filed to foreclose on a mechanic's lien within 90 days of recording. That mechanic's lien is way old and not valid. We have dealt with this situation before. You can file a motion with the court to have the lien removed. You can also get a judgment for some attorney's fees upon prevailing. Let us know if you would like our help.
Re: 16 year old lein on a home. Do I have to pay it?
You did not specify what type of lien was involved. If you are talking about a mechanic's lien, then it is probably invalid and you can file petition for removal. Feel free to contact my office to discuss the facts of this case a little further.
Re: 16 year old lein on a home. Do I have to pay it?
It depends. If the lien was foreclosed on and judgment against your inlaws was obtained by default, then vacating the judgment and setting aside the default may not be possible. But that is not to say it is impossible.
As to the increased amount of the lien, you cannot fight the accumulation of interest on a judgment. Ten percent interest per year over fifteen years should not make $55,000 out of a $10,000 judgment, unless the interest is compounded, which I do not think is allowed on judgments, so I don't understand the numbers there. It should be more like $25,000.
If the lien was not foreclosed on, then it is of no force or effect and you can have it removed.
Be advised that a fight with the company that took over the assets of the failed plaintiff is the same as a fight with the original plaintiff/contractor, if the assignment of the claim is perfected. This is a matter you should bring to an attorney to thoroughly get a good picture of what to do. Maybe a fight is worth it, especially if the lien was not foreclosed.
If there is a judgment that was the result of a trial, then you may not be able to have it set aside. Good luck.