Business Credit Magazine February 2014 | Page 23

Mechanic ’s Lien & Bond S er vices What do you do after a lien is filed but before foreclosure? The only way to foreclose on a mechanic’s lien is through a lawsuit filed in Superior Court. It cannot be enforced in arbitration, nor can it be enforced in Small Claims Court. The contractor or supplier may be able to file the lawsuit himself, but if the contractor/supplier is a corporation, limited partnership or limited liability company, then the law frequently requires that the foreclosure lawsuit be filed by an attorney. How can I cost effectively? Regardless of who served the pre-lien or who filed the lien, MLBS forecloses liens and files suits on bonds in all 50 states and Canada through the MLBS National Attorney Network. Our network comprises tested construction-oriented attorneys with an eye on “the dollars through the door.” Fees are negotiated on a case-by-case basis, depending on the circumstances of the case. Attorney fees are typically billed hourly; MLBS’ fee is typically billed contingent. Collect my money Foreclose a lien File suit against a bonding company MLBS can effect collection on any secured project. In other unsecured situations, MLBS can refer your claim to a local NACM Affiliate for collection. Demand Letter, Suit Against Bond and Foreclosure Service After the lien is filed but prior to suit or foreclosure, MLBS recommends a demand letter. In our experience, a demand letter often provides the right “push” to get the claim resolved prior to the costs and demands of suit. MLBS-produced Demand Letter: $40 plus certified mail costs MLBS National Attorney Network Demand Letter: $150 Call 216-212-6020  Email [email protected]  www.nacm.org