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Community Corner

BMP(Below Market Price) Home Fiasco-Town Sues Small Creditor

Robert Derham, Neighbor

I was forced by the Town of Los Gatos to release my small claims
judgment lien on a BMP Home. The Town paid the home owner's
back property taxes, mortgage and association fees, over $30K, 
but they demanded that I release my $2,280 lien. They also allocated another $10K to restore the unit, a stunning house in a new development built in 2007. The owner bought this home for less than $200K, market value over $900K. Apparently, this BMP home has a restricted deed, which does not allow claims. So, trades people beware, your mechanics liens will not be enforceable. I now have additional legal costs in addition to the amount I lost, meanwhile the owner walks away. (She was offered $5K relocation expenses) 

Legal, maybe, maybe not, as the cost of defending my lien would be more than my lien. Unfair? 

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