atherden2
Dec 3, 2007, 10:12 AM
I filed a lien on a home that was just built for lack of payment by the contractor. The home is owned by that builder and has not sold. I also filed a claim to lien with the county in which it was built the home still has not sold. If it goes into foreclosure do I still get paid and if so how long can it take?
ScottGem
Dec 3, 2007, 11:27 AM
You have, at best, a secondary lien. If there is a mortgage on the property, that will be primary. If there are secondary mortgages they will have priority over you. After secured loans, then the priority depends on the date of filing. So you have to determine where your lien stands in the priority.
If the property forecloses and is sold at auction, then any liens are paid in order of priority. If there is not enough proceeds from the foreclosure sale to cover all the liens then they are paid out in order of priority.
But you are not restricted to a lien to collect. If you sue and obtain a judgement you can go after other assets.