If a contractor goes unpaid for their work on a residential project, then yes - that contractor may end up filing a mechanics lien against the property. But, the mere act of filing a lien won't result in a foreclosure of the property, in and of itself.
It's very rare for a mechanics lien to actually result in the foreclosure of property, though. Instead, much more commonly, the lien claimant and the owner will resolve the issue before things escalate. And, before a lien dispute would even escalate to a foreclosure, there would be a lien enforcement suit during which the owner would have the opportunity to state their case and dispute the claim. And, during the life of that suit, an owner will also be able to negotiate the settlement of the claim as well.
So, ultimately, yes - failing to pay a contractor could end up resulting in the foreclosure of the project property. But, that would only be on the table after the contractor filed a valid and enforceable lien, then took the matter to court, then prevailed against the owner. And, at every step of the way, an owner will be able to negotiate the payment of the claim and release of the lien.
For more information on how to respond to the threat or actual filing of a lien claim, these resources will help: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...