Q: What is our recourse for a property subject to a trustee sale with a valid mechanics lien in place?
The property is located in Orange County CA
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A:
In California, if a property is subject to a trustee sale and there is a valid mechanic's lien in place, the lien may still have priority depending on the timing of the lien and the deed of trust being foreclosed on. Mechanic's liens for work performed on the property can take priority over other liens if they were recorded first. It’s important to understand the specific timelines and recording dates of the mechanic's lien compared to the deed of trust.
If the property is sold at a trustee sale, the proceeds from the sale are used to pay off the liens against the property in the order of their priority. If the mechanic's lien holds priority, it would be paid before any deed of trust or mortgage. However, if the sale does not generate enough funds to cover the mechanic's lien, the lienholder may not be fully compensated.
Your recourse in this situation could include enforcing the mechanic's lien by initiating foreclosure proceedings on the lien to recover the owed amount. It's advisable to consult with an attorney to assess the specific details of your case, including the priority of your lien and the amount recoverable through a trustee sale. An attorney can provide guidance on your rights and the best course of action to take to protect your interests in the property.
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