What Should I Do When Someone Files a Lien Against My Home in NY?
5 Things to Check When Liened
1. See if it is “defective on its face”
- Was if filed more than 4 months after the last day of work?
- Does it name the wrong owner?
- Does it misdescribe the property?
If yes, then it can be dismissed quickly. If not, it may take something more.
2. Have it “bonded”
- Filing a bond can lift the lien off the property and attach it to the bond instead
- “Bonding a lien” can satisfy a landlord or bank
- A bond eliminates the encumbrance on title
3. Deposit 110% of the lien amount with the court
- This will accomplish the same result as “bonding the lien”
- This is a useful tool where obtaining a bond is not possible
- But note that getting the money back often takes time and involves a fee
4. Demand that the lien be foreclosed within 30 days
- Failure to commence a foreclosure action results in the dismissal of the lien
- This strategy is often effective with smaller liens
- Although one is loath to demand that a lawsuit be started, it usually is not
5. Call your lawyer
- Each of these strategies has certain complications and legal wrinkles
- Sometimes it is OK to do nothing and just leave the lien in place
- A lawyer can sometimes calm down a lender or landlord who is alarmed