founation they were not aware of when we bought house. The work can get done.They want ot put lien on house which we will not have to worry about till we sell house. Is this a good idea?
2007-07-02 07:06:52 · 4 answers · asked by ycd71 2 in Business & Finance ➔ Renting & Real Estate
BAD Idea. Will make getting financing harder and reflect badly on your credit. In SOME states they can foreclose on you to get payments. Get a payment agreement in place and make payments.
2007-07-02 07:12:17 · answer #1 · answered by wizjp 7 · 1⤊ 1⤋
If you have to take out a home equity loan to pay for the work, there's no way around the lien. Any time you use your home for collateral for a loan, a lien is automatic.
Also, when you contract with someone to work on your home, they reserve the right to place a "mechanic's lien" on the property if the bill is not paid on time.
Even one of their subcontractors has a right to a mechanic's lien so you MUST make sure that your contract provides for indemnity from any subcontractor's liens. This is usually provided for through a surety bond or completion bond from the general contractor handling the job. Do NOT sign a contract that doesn't provide for one! EVER!
Your contract must also list all subs that will be used and provide for lien releases from them prior to final payment on the contract. Until all subcontractors have provided you with proof of payment from the general contractor AND provided a release of any right to a mechanic's lien, do NOT make the final payment to the GC. Typically the final payment should be 30% to 50% of the total contract price. The more the better, IMHO, as it's an incentive to the GC to play by the rules.
2007-07-02 07:24:29 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
WHY DID YOU BUY THIS HOUSE???
Didn't YOU have a building inspector inspect this place?
These are all things that the previous owner should have disclosed at least by the time of signing!
If these things were disclosed to you before signing and you knew that the furnace needed to be replaced, then do your best to save up the money before it gets cold enough to need one
As for the foundation, oh good grief!! I would have never bought the house in the first place (a good inspector could have told you this).
As for putting a lien on your house? I never would. a lien is a lien. Never, never, never!!!
2007-07-02 07:21:14 · answer #3 · answered by Debra d 3 · 0⤊ 1⤋
ouch......any lien on the house is bad. You also will probably have to pay if you refinance.
2007-07-02 08:08:17 · answer #4 · answered by WeLoan.Us 2 · 0⤊ 0⤋