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    sjorges's Avatar
    sjorges Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 8, 2007, 10:23 AM
    Foreclosure related to a construction lien
    Help...
    We sustained severe tree damage from an ice storm last December. We hired a tree service to take out several trees. We paid this service half of the money before the job and the remainder after the completion of the project. This tree service sub-contracted a large truck to use to take out our trees and never paid the company for the use of the truck. That company has now placed a lien for $2300 on our home and as of yesterday sent a certified letter that if we did not pay the $2300 they were going to start foreclosure on our home. The tree service has since declared bankruptcy so the truck company can't go after them for the money. My questions are:
    1. Is the use of the truck covered under a construction lien?
    2. If we pay off our house in full can they still force foreclosure?
    3. Does the company not get a tax break for bad debt
    4. Any other thoughts?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Dec 8, 2007, 10:30 AM
    Hello s:

    1. Probably.

    2. No, because they can't force you into foreclosure in the first place. Paying off your house has NOTHING to do with this lien. It will stay there and can only be collected on when you SELL the house.

    3. Probably, but that isn't a concern of yours.

    4. No.

    excon
    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
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    #3

    Dec 8, 2007, 10:33 AM
    I don't see how the truck company even has a case against you or how they've manage to place a lien on your home. You didn't contract with them, the tree service did. Their cause is against them, not you. If a bankruptcy is preventing the truck company from subjugating against the tree company then that's their loss and they'll have to write it off. A short, inexpensive consultation with a lawyer should clear it all up.
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