Collecting debts owed to you can be frustrating and difficult. Sometimes owners and/or general contractors just need a little push to pay you the debt they owe you. Filing a mechanics lien can be that needed push. A mechanics lien prioritizes your debt and gets you paid. This is part of a 17-Part Series on How Mechanic Liens Work To Get You Paid.
Escalate Your Game
“The check is in the mail.” “I’ll have the money to you by the end of the week, I promise.” How many times have you heard these excuses and many more when trying to get paid. Statements such as these can be frustrating things to hear when trying to get the money you worked so hard for. Filing a mechanics lien shows the other parties on the project (especially the one that owes you money, and the other parties in control of the project funds) that you are serious about getting paid. Mechanics liens are sure to get the attention of an owner and every other party involved. When you file a mechanics lien, you escalate your claim in the eyes of the parties that matter. The lien shows construction parties you are serious about getting the payment that you have earned, and can be the push that will get the ball rolling on writing that check. This is because a mechanics lien presents a very serious situation that, if not addressed and resovled, could have a catastrophic outcome for owners, lenders, general contractors, and other parties involved with the construction project.
Get Your Priorities Straight
[quote style=”left”]Filing a mechanics lien can push you to the top of the priority list.[/quote]Owners, general contractors, and lenders all have obligations to pay certain debts to certain parties. The sad truth is that if you’re not getting paid appropriately and on-time, your claims for payment are simply not a priority to the party with the money. A mechanics lien, and any associated required notices, will fix that. When you are able to file a mechanics lien, and then even more when you put a mechanics lien on the books, it’s amazing how fast your claim for payment will get the full attention of the parties with the money. Priority is all about which debt can hurt the most. When a mechanics lien comes into play, you will quickly be looked at as the debt that creates the most exposure for the interested parties. Mechanics liens, if they remain unpaid, ultimately allow for the foreclose on the property to satisfy the lien claimant. Owners and others are not going to want that to happen, so they will become very willing and able to resolve your issues. Filing that mechanics lien will push you to the top of the priority list and get you paid.
Other Ways A Mechanics Lien Works To Get You Paid
A mechanics lien claim can be the push that gets your claim for payment first priority with the party with the cash. Nevertheless, it is not the only reason mechanics liens work. We’ve put together a Free Guide to the 17 Ways A Mechanics Lien Works To Get You Paid, that explains some of the other reasons. The full list of these mechanics lien effects are as follows:
- A mechanics lien encumbers the property
- A mechanics lien gets the lenders attention
- A mechanics lien gets the owners attention
- When mechanics liens are filed they cause contracts to get breached
- More parties become obligated to your debt
- A mechanics lien sets a firm deadline
- You can always fall back on the property for payment if you filed a mechanics lien
- People will pay you to avoid dealing with the mechanics lien
- Mechanics liens are hard to challenge
- Mechanics lien claims help when parties file for bankruptcy protection
- Mechanics lien will effectively freeze money flow on a project
- Mechanics lien claims may force parties into favorable joint check agreements
- Lien claims may entitle you to attorney fees and other costs
- Mechanic liens escalate the situation and prioritize your debt
- Mechanics lien claims may affect a contractor’s bonding ability
- Lien claims affect relationships
- Mechanics liens creative leverage