There’s a property that’s going into foreclosure. It has no mechanical liens yet, but there’s about $20k pending that will be put on it in the near future.
If the homeowner transfers his deed to someone else today and gets it recorded. Can the mechanical liens still be put on this property after it has new ownership?
It doesn’t matter when the homeowner transfers the deed. If the property is in foreclosure, there is a senior lien (the 1st trust deed) that will still need to be satisfied at the foreclosure. If the mechanics lien is placed after homeowner quitclaims, the mechanics lien simply waits in line (as a 2nd or 3rd) for proceeds from the foreclosure.
The contractor has nothing to lose by trying to place the lien, but odds are they won’t get much if anything if the property goes to foreclosure.
What I meant was, what if the owner transfers the deed to someone else, and then does a short sale, sells the home, and avoids foreclosure.
If the homeowner transfers the deed and it gets recorded, would the contractor still be able to put a mechanics lien on the property?
Generally speaking, it depends on whether you are in a race, notice or race-notice jurisdiction (these are rules regarding recording property interests). Furthermore, your State’s mechanic’s lien law might address this issue specifically.