We filed and recorded a mechanic's lien with your company...what's the next step in being able to collect what we are owed. If the property sells, does the lien have to be paid in order for clear title to be issued?
1 reply
Jan 20, 2020
There are a few steps that can help to force payment once a mechanics lien has been filed. First, it's important to serve notice on all required parties (you can find the service rules here: Do I need to send notice the Lien was recorded?). It's also a good idea to send additional notice to any non-required parties who might also help to influence payment decisions.
Once everyone's aware of the payment dispute, it's usually time to negotiate payment. If payment talks aren't going anywhere, it may eventually also be helpful to threaten to enforce the filed lien claim with a document like a Notice of Intent to Foreclose. And, if neither negotiating payment nor threatening legal claims works, it may eventually come time to consider enforcing the lien via lawsuit. Though, things rarely make it to that point.
Levelset actually discusses these steps in further detail here: The 4 Steps to Take After Filing a Mechanics Lien.