National Lien and Bond Claim Systems States Without A National Lien Verification Process The Efficiency of A Mortgage Bail Out Is At Risk

    HIGHLAND PARK, IL, September 24, 2008 /24-7PressRelease/ -- All the media attention appears to be focused on bailing out the banking industry but what about the collateral damage caused to other real estate and construction businesses which are also hurting financially? Due to rising construction loan delinquencies thousands of small business owners are trying to collect their entire lifetimes of savings that are currently tied up in past due receivables for work provided on construction projects in trouble.

According to Hal Emalfarb, Esq., a lien law practitioner, he believes there must be a legislative mechanism created in any bail out scenario that provides the construction trade quick liquidity to settle their liens on delinquent construction projects. The construction industry depends on lien compliance to secure unpaid project receivables. In every county in the country the construction trades are competing with the banks over the same collateral in foreclosure proceedings. Many times it comes down to simply discovering if the bank's mortgage was recorded before the work commenced at the site to determine which party the contractor or the bank has a first lien in the property. A vital need exists to establish a third party national lien verification process that validates and administrates the extent and priority of the existing securitization of any bad debt being transferred.

In the proposed mortgage bail out the government should look to the private sector to assist them in a settlement process of verifying the validity and extent of the consensual liens created by the lender's mortgages and to quickly encourage by mediation or otherwise the settlement of any amounts that can be segregated and escrowed to satisfy other competing mechanics and tax liens that exist by virtue of statutory or other laws. The Treasury has a duty to assure that both lenders and business interests are balanced as money once again flows into the economy. Proposed regulations and legislation must be carefully drafted. Too often in the last bail out the banks were thrown a life line but the tax payers who own and work in many construction companies went under because their interest were ignored by the regulators. Careful drafting of the regulations should avoid the proposed bail outs from repeating the same mistakes.

About National Lien and Bond

National Lien and Bond Claim Systems is the nation's leading lien compliance service offering its services to construction companies globally to help secure payments on account of construction projects. For more information contact Hal A. Emalfarb, Esq. at (800) 432 7799 or visit www.mechanicslien.com

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