Legal Question in Construction Law in New York

Mechanic's Lien vs. Mortgage

Does a mechanic's lien have priority over a pre-existing mortgage? The contractor walked off and did not complete the job and I dont' want him trying to take my home fir money he's not owed because he did not complete the job. He got paid money for subcontractors he did not pay and I had to pay them for rough work done (electric and plumbing) and to complete the job. He was paid 93,100.00 out of 130,000.00 contract. He left me with a wood frame, windows and shingles and plenty of violations as explained to me by the town. can they take my house if I have excellent payment history with my mortgage company. I can prove everything I had to do and pay for to get my house up to code and completed. I never refuse to pay him I wanted to hold my final payment until the job was completed and he then walked off the job and never returned. mind you out of the 93,100.00----- 80,000 of that was gotten within a one month period and the job was no where near complete help can he take my home for a 47,400.00 lien?


Asked on 6/06/07, 6:21 pm

2 Answers from Attorneys
Meyer Silber The Silber Law Firm, LLC

Re: Mechanic's Lien vs. Mortgage

The short answer is yes, the contractor can seek to foreclose on the mechanics' lien independent of the mortgage. Practically, if the house has little equity, the contractor won't get much, but unless you seek to have the lien thrown out, the contractor can foreclose.

Please let me know if I can be of additional help.

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Answered on 6/06/07, 6:31 pm
Kevin Connolly Kevin J. Connolly

Re: Mechanic's Lien vs. Mortgage

The mechanic's lien is behind the mortgage, but that does not preclude his trying to hold you up. You need to paper the file, and to do it now. Start with terminating the contractor. Continue with the lien contest process, for which you are going to need an attorney...one who understands the lien law (it's a seriously complicated statute) and who has a track record of successfully representing owners against lienors.

Seriously, if you can review the Lien Law and understand it enough to know that your opening shot should be a demand for an itemized statement, and understand the concept of a lien fund and subrogation, maybe you'll survive on your own...but it's not likely. You should engage counsel promptly.

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Answered on 6/06/07, 7:35 pm


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