Posted by JPiper on December 08, 2000 at 07:47:18:
OK, I think I get it. You’re going to negotiate a deed in lieu of FOR the owner WITH the first mortgage holder.
First, if you receive a note for your services prior to the deed in lieu of, secured by a mortgage or deed of trust, then it will be of record. If the lender accepted the deed in lieu of then you would now be in first mortgage position. I wouldn’t hold your breath though waiting to do one of these…chances are the lender will not accept the deed in lieu of with another recorded item behind them.
But maybe you’re talking about providing services that would entitle you to the filing of a mechanic’s lien. Whether these services that you’re talking about would indeed qualify under the mechanics lien law in your state I can’t say. But that’s the first thing I would check if I were you.
Next though, if the mechanics lien is of record prior to the deed in lieu of, see my first comment. Don’t expect to have much success with negotiating this with the lender.
But lets assume that it isn’t of record, you negotiate the deed in lieu of, and LATER record the mechanics lien. Again, understand that state law varies on this subject so you need to review that law for your state. But the next problem is that at least in my state a mechanics lien is ONLY perfected following a court action…that costs money. And imagine yourself standing in a court making the argument that you have a valid mechanics lien that you didn’t happen to mention to the lender while you negotiated on behalf of the owner for the deed in lieu of. This sounds like at least an ethically challenged argument to me at a minimum.
I’d check with a lawyer if your idea is a mechanics lien. Lots of ins and outs with these that are technical in nature.
Hopefully I now understand what you’re attempting to do.