When you are trying to juggle everything that comes with the construction of a new property, receiving a lien notice is the last thing you need. Don’t panic but, rather, take steps to address the notice in order to remedy the situation by whichever means available to you. These steps are important in safeguarding your investment and ensuring you are able to retain ownership of a property.
As a property owner, you may not even understand how a notice of lien applies to you, rather than another party that carried out work on your property. However, a statutory lien is held against the real estate which benefited from improvements, which means your home could face foreclosure if the issue is not resolved to the satisfaction of the claimant.
Lien Notice Claimant
First and foremost, it is important to contact the lien notice claimant. This is the best way to get all the relevant information you need to prevent the claimant from pursuing the lien further. There is a distinct possibility the lien notice has been issued in error, or another party is responsible for a defaulted payment. In some cases, a claimant may issue a lien notice for a payment that is not yet due, which you may be able to resolve by discussing intention to pay on time.
Where there is a legitimate payment issue, the holdup is either on your end or with another party. You may be able to avoid the lien being filed by negotiating a payment plan with the claimant in either case. If another party is responsible for the delay in payment, you will then need to contact them, or have your general contractor make contact to bring payments up to date.
General contractors may have greater leverage due to their understanding of typical payment issues which occur during construction. If you feel like you are in over your head, do not hesitate to touch bases with your GC in order to compel the responsible party to make payment.
If you have no foreseeable means of satisfying the debt owed to a claimant(s), it is still important you do not ignore the issue. New property developers or homeowners often encounter issues with their budget due to inexperience but there are typically ways to reorganize cash-flow in order to keep the project on course, without having to lose a property to foreclosure.
You may want to consult with a debt management specialist who can look at the specific details of your case. H. Lehman Franklin can provide debt management advice to property owners or general contractors in Georgia who have receive a lien notice due to defaulted payments. We are focused on helping clients restructure finances so foreclosure may be avoided. Reach out to the offices of H. Lehman Franklin at 912-764-9616 or at email@example.com today if you have received a lien notice and don’t know how to proceed. We offer expert consultation to provide clients with the best available options for managing debt, including filing bankruptcy in the state of Georgia.