Legal Question in Real Estate Law in Ohio

Lender renigs / contractor threatens ''mechanic's lien''

In June of 2002, we contracted for home improvement work that was promised completed within 90 days. Six mos. later, we were still waiting and were asked to jump through hoops again for the financing. Meantime, I had been laid off from my job. They still agreed to do the work rather than release us from contract and refund the deposit. In the middle of the actual work, my husband also was laid off. Now the lender is refusing to pay the contractor. The contractor is harassing us with calls and threats of something they call a ''MECHANIC'S LIEN''. Can they do this? Wouldn't the lender be the ones the contractor should be arguing with? We have complied with every aspect of the contract. They have not. Additionally, the lendor has not contacted us or given us the opportunity to even try and pay the balance ($10,000). What recourse do we have....we are not in a financial position to hire a lawyer as niether of us has been able to find employment yet.?


Asked on 4/22/03, 3:39 pm

1 Answer from Attorneys
Philip Owens Philip M. Owens, Attorney at Law

Re: Lender renigs / contractor threatens ''mechanic's lien''

The lender is not the one who contracted to have the work done. You owe the contractor. Not the lender. Under certain circumstances, an unpaid contractor can file a "Mechanics Lien" against your property. Generally, this has to be done with 6 months after the last work. Since you live in the house, there are certain notice provisions the contractor must comply with. I think that you should talk with the lender to find out what is wrong. I you have objections to the quality of work, etc, then you must notify the contractor IN WRITING. NO PHONE CALLS HERE. THE OBJECTIONS MUST BE ITEMIZED. If you want to read the statute in KY, go to www.kentucky.gov and then to the legislative resources link. The statutes (laws) are call the Kentucky Revised Statutes. Look up mechanics liens. (chapter 346, I think). If the contractor files a good lien, then he can file suit within a year. This can result in a sale of the property to pay the debt. Find the local legal aid office or your local bar association. Or, go to an attorney. You may be surprised at how easy it is to afford. Can you scrounge up $50 to $100 to get information to possibly save your house? First, I would speak to the lender and find out the problem.

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Answered on 4/22/03, 6:13 pm


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