How can we enforce our mechanics lien.

4 days ago

Hello,
We recorded a mechanics lien on a home in Indianapolis Indiana. The owner was notified of the lien, but was still able to sell the home without paying our company off. The lien is still active on the home. What can be done now that the home has been sold?

Senior Legal Associate Levelset
95 reviews

When a mechanics lien has been filed prior to the sale of a property, that lien will generally remain effective against that property even after the sale has taken place. So, the process for enforcing a lien actually won’t change all that much simply because the property is sold.

Of course, keep in mind that there are some steps worth taking prior to enforcing a lien claim, including bringing the lien to the attention of the new owners – potentially via Notice of Intent to Foreclose. For more background on how to recover payment after a lien is filed: The 4 Steps to Take After Filing a Mechanics Lien.

Note also that there may be some benefits to a situation where a previous owner is responsible for a mechanics lien that’s now affecting new owners. If the previous owner failed to disclose the claim prior to the sale, they may find themselves in trouble and extra-motivated to ensure the lien claim goes away. Plus, regardless, new owners will usually put additional pressure on the prior owner to resolve mechanics lien issues with the property.

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