# Lien and Intent to Lien in IL



## Tiger (Nov 21, 2007)

I contracted directly with a homeowner on an *insurance job* (never again). There were 3 contracts (one paid completely, a small one not paid & one half-paid). They had another contractor complete the job after meeting with the insurance agent (not what I'd contracted). The 3 contracts are substantially complete.

This account is now over 60 days. Do I need to send an Intent To Lien? What is the process for a Lien? It's been more than a decade since I had to Lien a property. Should I skip the Lien process & go Small Claims? The amount is under $10k which I believe is the limit for Small Claims in IL.


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## concretemasonry (Dec 1, 2006)

All states have different lien laws, procedures and timing.

File the lien on the property after you know the procedure. Then go to small claims court and file there against the owner that you contracted with. If you win, there you will not get the money, but a judgement that usually can be enforced by a sheriff. If you know the owners bank account number from a check you received, that will make enforcement much faster and easier. When you get the money, you will have to release the lien.


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## We Fix Houses (Aug 15, 2007)

You can start by searching mechanics ; liens IL on the net. You can also try your State Gen Assembly page and search there. The statutes are not that difficult to figure out. I can't give you any more specifics for your state. 

Most likely perfecting or collecting on the lien means that you can foreclose on the property and force its sale. There are time frames that have to be met to file the lien and FC action. Its all spelled out in the statues. 

Here in NC you must file the lien within 120 days of last material / labor and the lawsuit within 180 days. The FC lawsuit takes a greater understanding of the law and procedures. If you get into court with your FC lawsuit and your FC docs are defective you can ask or the judge or he can award a simple money judgement if your claim is valid rather than FC . That means no sale of the prop etc at that time, you just have a money judgement that 96% of them go uncollected. There's other ways to collect a judgement but that's a different thread. 

You can also just file a small claims action and possibly get a judgement too. However if you loose in FC court or are not awarded a money judgement you may have to file the small claims within 180 days if it relates to the lien. So be sure the time lines work out for all of this if you loose in FC court.

I can tell you I'm working on one right now. This cust just takes too long to pay on this job and a few previous jobs. Its now 60 days past due. I filed the lien last Friday. I'm sending them the required Notice of Lis Pendence 10 day FC notice as well as a cover letter that explains how such a filing will affect their lives. They don't have a clue what a lien really is. I had to do one with them before and the woman said I'm never going to sell...etc. The husband is a friend of mine. 

I'm comfortable filing these things and in a court room to an extent. You can't use the process to abuse or intimidate people. It illegal. Thats why when I file the Lis Pendance I've commited to the rest of the FC process as well as the $200 - $600 in addl costs out of my pocket. I'm representing myself. Its not that big of a claim.

I hope the 10 day notice and FC life changing letter will get them to pay up. 

I would not hesitate if I were you to file the lien and send a copy to your customer. Filing a lien does not have a high technical / legal threshold it just needs to be substatially correct. You don't need to do anything else if you choose not . Maybe they'll pay up. It will encumber the title to the house until you release it or they can file a doc in certain ways to release it but it will be there for the short term.

I hope this answers some of you questions.

Steve


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## mickeyco (May 13, 2006)

Tiger said:


> I contracted directly with a homeowner on an *insurance job* (never again). There were 3 contracts (one paid completely, a small one not paid & one half-paid). They had another contractor complete the job after meeting with the insurance agent (not what I'd contracted). The 3 contracts are substantially complete.
> 
> This account is now over 60 days. Do I need to send an Intent To Lien? What is the process for a Lien? It's been more than a decade since I had to Lien a property. Should I skip the Lien process & go Small Claims? The amount is under $10k which I believe is the limit for Small Claims in IL.


Illinois has a $5k limit for small claims, but if it's for separate things you can file multiple suits. You might pay a lawyer to send a scary letter but you're a bit higher than what people will usually pay to avoid a problem in my experience. The problem with small claims in Illinois is that if you get a judgment in your favor there is no way to make them pay, some pay, some don't, I'd go for the lien. Do a search here and on google, there is a local guy that wrote up the whole procedure for filing a lien in Illinois, I can't find the link maybe you'll have better luck.

Here is a link to a pdf that has an overview for Illinois.

http://www.nationallienlaw.com/PDFs/Illinois/Illinois_Lien_Law_Summary.pdf



.


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## Ed the Roofer (Dec 12, 2006)

Mickey,

Maybe it is a County thing, but in Kane County, the Small Claims limit is $30,000.00 dollars.

Tiger,

If you want to get together, my shop/office is in Carpentersvile and I have all of the documents needed.

Also, if you do an advanced search for thread titles from topics I posted, I have an extensive post about Illinois Mechanics Liens and laws that pertain to Primary and Secondary contractors.

Different rules apply if you have the contract directly with the property owner.

For a primary contractor, a Notice of Intent must be sent out registered or certified mail prior to the 90 day point after the last day worked on the project. Then, prior to the 4 month or 120 day mark, the actual Lien must be filed. 

Along with the Lien, a sworn statement and a notarization of the documents must be done.

That would classify as a Perfected Lien.

You actually have 2 years to file suit to enforce the Perfected Lien.

Also, you can still file a Lien up to 2 years after working on the property, but then it's status and power of succession is diminished, since you no longer are 1st in line with regards to the mortgage holder and other claimants.

If I have time later, I will pull up the old thread if you did not already find it.

Ed

edit:
Here is the link to the thread with most of the information.

http://www.contractortalk.com/showthread.php?t=28043&highlight=illinois+lien


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## Tiger (Nov 21, 2007)

Thanks Ed. Check your PM.


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## concretemasonry (Dec 1, 2006)

Tiger -

Get on it quickly. It would be a shame to be a day late on filing anything. The dates are very important and rigidly enforced and excuses do not go far.

Dick


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## mickeyco (May 13, 2006)

Ed the Roofer said:


> Mickey,
> 
> Maybe it is a County thing, but in Kane County, the Small Claims limit is $30,000.00 dollars.
> 
> ...



I found this for Kane, it was $5000 in Cook, but it's been a while, it may have gone up, that would be good:



> This booklet is designed to provide information regarding the legal process in small claims, law medium, forcible entry and detainer actions, and arbitration. Note that all fees collected by the Circuit Clerk are subject to change. *A small claims case is a suit for money damages of $10,000.00 or less.* A Small Claims case will have the letters "SC" included in the case number.An action in forcible entry and detainer is a type of law medium case. This action is brought by a landlord against adue rent. A Law Medium case will have the letters "LM" included in the case number.
> tenant. The only issues before the Court in a forcible entry and detainer action are possession of the property and past
> 
> *An arbitration case* is a suit for money damages in excess of *$10,000.00 up to $50,000.00 *or the jurisdictional limitapproved by the Illinois Supreme Court.  Link to Kane County info in pdf









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## Ed the Roofer (Dec 12, 2006)

mickeyco said:


> I found this for Kane, it was $5000 in Cook, but it's been a while, it may have gone up, that would be good:
> 
> 
> 
> ...


I'm glad you looked that up and pointed out the discepency Mickey.

Yes, Mandatory Non-Binding Arbitration is the higher dollar values.

I need to get deposed sometime next month and attend a Mandatory Non-Binding Arbitration hearing in the first half of Decebember for a case from November, 20006, which I filed a Lien on in January, 2007 and followed up with my attorney to file suit immediately thereafter.

It takes time to go through the regular court required paces, but if you are right, it will eventually at least get you a judgement and then you have to go back in and get a court order to attach property or other assets or garnish wages.

Ed


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## Tiger (Nov 21, 2007)

I should have stated the limit is $10k in McHenry County.


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## Floordude (Aug 30, 2007)

Here I have 90 days to prefect a lien. I suggest you get on it and quick!


I know guys that lien the property before they even start the project. Once the project is complete, he withdraws the lien, when he is paid in full.


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