Legal Question in Real Estate Law in California

Re: Leins

Generally, liens can only attach to your property through agreements (i.e. mortgages) or judgments. If the person wants to secure a judgment, they have to give you notice. That being said, I have seen situations where creditors do not actually notify debtors and a lien attaches without notice.

A homestead is an exemption that you record to protect an equity interest in your home. Even if a creditor forces a sale of the house, you are entitled to protect a certain amount of equity for reinvestment in another home. This exemption generally doesn't protect you if the primary lender forecloses.

Bankruptcies can reduce loans but generally not loans that are already secured (i.e. your mortgage). You should go visit a bankruptcy attorney and explore your options.

Re: Leins

I feel very sorry for you instead of writing to the Internet you should be running, very quickly, to an attorney who deals in real estate/construction matters. Let him read over the contract and help interpret it for you. This is a holdup. Since work is already started it is my opinion he is bound by the contract and to invoke that clause would cause you damage. No court should, you hear me say should not would, hold against you. But you never know what's going to happen in a courtroom. It depends on who the judges, where you live, and so many other factors. It's his problem to the once the bid is excepted that is the amount most of the time that must be lived up to.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.

Re: Leins

If someone loans you money to buy real estate, they normally get a security interest of some kind in the property, such as a deed of trust or a mortgage. These instruments can then be recorded and when properly recorded they would create a lien, much the same as a recorded judgment of a court would do.

Thus, the answer is that private agreements can be used to create liens without going to court, but some paperwork, properly prepared and handled, is necessary.

My advice is to seek a free initial consultation with a bankruptcy attorney who is willing to explain the advantages and also the disadvantages to you in filing Ch. 7. Bring your documents.