Legal Question in Real Estate Law in Oregon
Lien to force sell of property
I bought some land and had a house put on it, with a VA loan, and had a contractor developed the land for the home. while digging the well I went over the well allowence for the well, meaning that I would have to pay out of pocket what I went over, and the loan will not cover this. The contractor has been paid in full for developeing the property, I still owe him money for the overage on the well which there was no contract for (Verbal) so now I do not have the money to pay him the full amount he is requesting, and will not take payments, he has informed me that he will put a lien on my house and land and force the lender to sell my property to satisfy what I owe the contactor. Can a contractor put a lien on it and force me to sell my house and land? Thank you for any imput
1 Answer from Attorneys
Re: Lien to force sell of property
Oregon law allows a construction contractor, who is licensed and bonded during the time he did the work, to file a construction lien against property where the contractor has provided services and the owner has not paid.
The construction lien law is quite technical and requires the contractor to give the owner certain notices before and sometimes during the work period. There are very specific time lines that apply to construction liens and notices.
If the construction lien is not paid, the contractor can foreclose on the property. If the contractor completes the foreclosure, the result will be a sheriff's sale of your house and land. If the lien is filed and the contractor starts the foreclosure, it will also result in a default under the VA loan that you obtained to build the house and the VA could foreclose on the house.
The fact that there is no contract specifically for the overage on the well probably does not defeat the contractor's ability to file the construction lien.
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