{"id":1566,"date":"2018-07-24T09:52:01","date_gmt":"2018-07-24T14:52:01","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/?p=1566"},"modified":"2018-10-31T11:49:35","modified_gmt":"2018-10-31T16:49:35","slug":"foreclose-construction-mechanics-lien","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2018\/07\/foreclose-construction-mechanics-lien.html","title":{"rendered":"How to Foreclose on a Construction or Mechanic\u2019s Lien"},"content":{"rendered":"

\"\"<\/p>\n

When a property owner fails to pay a contractor for work that has been performed, a foreclosure of a mechanic\u2019s lien can ensure the contractor receives payment. <\/p>\n

By placing a lien against a property, the homeowner may be compelled to finish making payment for services already rendered. <\/p>\n

The process of filing for a mechanic\u2019s lien and enforcing this lien vary by state, but below we will discuss some of the usual legal processes that take place when attempting to enforce payment.<\/p>\n

<\/p>\n

The Mechanics Lien Foreclosure as a Tool for Payment<\/h2>\n

Property owners may hire contractors to construct a new home or building or to make home improvements. <\/p>\n

Contractors usually provide a contract that states how much they should be paid for the agreed-upon work. <\/p>\n

Some states allow contractors, subcontractors, and parties that provided labor, services or materials for a home or construction project to place mechanics liens on the property where contractors are performing work, and this will remain in place until they receive full payment. It is wise, after the payment is delinquent, to start the lien process now, to protect any property rights. <\/p>\n

The mechanics lien serves as a hold against the property. If payment is not received, the contractor can then try to foreclose on the lien. This process requires judicial intervention and an order from the court.<\/p>\n

How to Pursue a Construction Lien Foreclosure<\/h2>\n

After the lien is filed, the contractor usually only has a limited amount of time to file a court action to enforce the lien, such as 90 days. This timeline varies by state<\/a>. If the contractor does not follow up with enforcement, the lien then becomes invalid. <\/p>\n

When a lien is foreclosed upon, the lienholder forces the sale of the property so he or she is paid the portion of the proceeds from the sale that he or she is owed.<\/strong><\/p>\n

Even if the property is not sold, a mechanic\u2019s lien places a cloud on the title so that the property is not marketable in case the owner wanted to sell it on the open market. <\/p>\n

Valid property liens must be paid off before the property can be sold. <\/p>\n

What Are the Steps Involved in a Mechanics Lien Foreclosure?<\/h2>\n

There are several important legal steps involved in the mechanic\u2019s lien foreclosure process and if you\u2019re not familiar with them, they can look overwhelming.<\/p>\n

However, LienItNow makes beginning the construction payment process<\/a> clear and simple. You complete our online form based on your specific information. Our website generates the form you need, and you review it. You then sign and return the documents. <\/p>\n

After the contractor has filed a lien and provided all the necessary notice to others, it must take additional steps to ensure payment and enforcement of the lien. <\/p>\n