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How was this property sold when we have a mechanic's lien on it?

TexasLien ForeclosureMechanics LienRecovery Options

We ordered a mechanics lien through you all. Received an affidavit of lien. The property has changed hands twice since. Now I don't know what to do.

2 replies

Mar 3, 2020
Practically, a mechanics lien filing will make it harder to transfer, sell, or take out a loan or mortgage against a property. This is because the lien claim puts a stake against the property title - and anyone who claims the property after the lien is filed could be at risk of facing a lien foreclosure action. However, a mechanics lien filing doesn't mean the property cannot be sold or transferred. Rather, it means prospective buyers and lenders would typically not want to do a deal on the property until the lien is cleared up. And, if a buyer, lender, title company, etc. is ok with the lien - they're free to move forward with a purchase.

Does a property sale invalidate a mechanics lien claim?

Generally, no. Mechanics lien claims tie to the property title, not to any individual or any business. So, if a valid mechanics lien claim is in place, that lien claim would stick with the property and the new owners may end up being responsible for the lien.

Steps for forcing payment after filing a mechanics lien claim

There are a few steps that can be taken after a mechanics lien has been filed that can help to force payment. Levelset discusses those steps in detail here: The 4 Steps to Take After Filing a Mechanics Lien. As mentioned in that article, making sure all relevant parties are aware of the lien is a good first step. So, if the property has changed hands, notifying the new owners that there's a lien on their property might help to get payment talks moving in the right direction - they may force the prior owners to resolve the matter. Additionally, turning up the heat with a document like a Notice of Intent to Foreclose could help. That document is a threat that, if payment isn't made and made soon, then the lien will be enforced. And, since nobody likes dealing with a lawsuit, the threat of a foreclosure suit might stir the pot and get payment talks moving, too. Finally, if all else fails, enforcing the mechanics lien is an option (as long as the deadline to enforce the lien claim hasn't passed).

Even if a mechanics lien is no longer effective, other recovery options could lead to payment

Finally, keep in mind that mechanics liens are only one payment recovery tool available. Pursuing legal claims (like breach of contract or under the Texas prompt payment laws), sending a debt to collections, or even doing something as simple as sending a payment demand letter to a nonpaying customer could all work to push toward payment.
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Mar 30, 2020
Am I supposed to change the lien to reflect the new owner?
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