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  1. #1
    Amyjackson is offline Junior Member
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    Default Pre-Lien and Lien Letter Timeline

    I have been discussing with our owner that I didn't think our late letter, pre-lien letter, and lien letter timeline was correct? He insists that it is...

    What day is it appropriate to assess the late fee, Pre-lien fee and Lien fee, and the letters to send out with it??

  2. #2
    Autodoc's Avatar
    Autodoc is offline Mod eMeritus
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    Default Re: Pre-Lien and Lien Letter Timeline

    that all depends upon your state and the Lien laws.

    Just about every state has different rules.
    Wayne
    Jamestown, ND


    All arguments can be resolved ... with high explosives and Humor!!!

  3. #3
    Gina6k's Avatar
    Gina6k is offline Moderator
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    Default Re: Pre-Lien and Lien Letter Timeline

    Hi Amy,

    Welcome to the forum!

    Generally speaking, and all that follows is how we process ours. ALWAYS check with your attorney to insure you are within the laws, even in regards to the wording of your notices that you send to your tenants.

    The late fee kicks in after the 10th day late. For example; our $10 late fee is added and letters print out on the 11th day that rent is past due. We are on the "on or before" the 1st of the month due date.

    The Preliminary lien fee kicks in on or after the 20th day late. They have 14 days to respond, then the lien notice goes out. Again, since we still have the "Opposition to Lien Sale" document, you have to give them 14 days from the date of mailing on that one to respond also. Then you can proceed with your lien sale.

    Once your letters are all in order and from the time you deposit your lien notice into the mail, you can commence with lock cuts and auction prep. You also need to remember that you must advertise the sale two times prior to the auction date at least one week apart.

    From start to finish from the 1st day a tenant is late, it can take approximately 68 days late to auction date. HOWEVER, I would suggest that you always factor in 2 or more "extra" days in the process. This is just insurance in case anything is delayed or... besides you don't want to push the lien process too hastily and end up with a lawsuit. Better to be safe than sorry.

    For instance we never calculate in the "day of" mailings, we start the count beginning the next day. As long as you follow the CA State Lien Law process you should be okay. The link above is precisely how the law currently stands. There could be changes coming about early in the Fall, so watch this thread along the way also.

    Oh and you can only charge ONE Preliminary fee and ONE Lien fee per unit. You can charge a late fee each month that rent remains unpaid.
    Last edited by Gina6k; 17th August 2010 at 04:01 PM.
    Gina 6k
    CochraneStorage dot com
    Morgan Hill, California
    twitter.com/CochraneStorage

    You only live once, but if you do it right, once is enough!
    I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.

  4. #4
    ams's Avatar
    ams
    ams is offline Senior Member
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    Default Re: Pre-Lien and Lien Letter Timeline

    Like it was said, it depends on your state. If you find it your time line was incorrect, make sure you credit those fees and re-start the process again.

    --
    Ron

  5. #5
    Gina6k's Avatar
    Gina6k is offline Moderator
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    Default Re: Pre-Lien and Lien Letter Timeline

    Hey Autodoc, ams... I hate to point this out, but Amy did drill down into the California forum to ask her question. I think it's safe to assume she is in California.

    If I'm wrong, you both have my apologies.
    Gina 6k
    CochraneStorage dot com
    Morgan Hill, California
    twitter.com/CochraneStorage

    You only live once, but if you do it right, once is enough!
    I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.

  6. #6
    ams's Avatar
    ams
    ams is offline Senior Member
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    Default Re: Pre-Lien and Lien Letter Timeline

    Quote Originally Posted by Gina6k View Post
    Hey Autodoc, ams... I hate to point this out, but Amy did drill down into the California forum to ask her question. I think it's safe to assume she is in California.

    If I'm wrong, you both have my apologies.
    I just saw that as I looked at the forum listing, the latest post section doesn't show the tread, and I didn't read the whole forum thread location title

    --
    Ron

  7. #7
    Autodoc's Avatar
    Autodoc is offline Mod eMeritus
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    Default Re: Pre-Lien and Lien Letter Timeline

    I noticed that later --- thanks for covering everything Gina

    Guess that's what I get for just using the new posts link and not looking at the which forum I'm in.
    Wayne
    Jamestown, ND


    All arguments can be resolved ... with high explosives and Humor!!!

  8. #8
    Amyjackson is offline Junior Member
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    Default Re: Pre-Lien and Lien Letter Timeline

    Thank you very much Gina! We just got rid of our manager and were trying to organize one of our sites realizing that there are things not being done correctly. Thank you for clarifying all of this.

    And yes, I am in California

 

 
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