Miller Starr Regalia

A development project stalls, and the construction lender forecloses, "wiping out" all junior liens, including mechanic's liens recorded by unpaid subcontractors and material suppliers.  Some of those "mechanics," however, also had served bonded stop notices, and other do so after the foreclosure, but within the time allowed after cessation of work.  The lender =responds that there is no more money left in the till, the entire construction loan fund having been exhausted before the lender received the stop notices.  If the stop notice claimants are on their toes, they may still be able to force the bank to pay them.

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