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The mechanics lien was sent, what the next step?

MinnesotaLien ForeclosureMechanics Lien

I am a subcontractor that filed a mechanics lien and as on last month the company received their mailed copy. What is the next step?

3 replies

Dec 9, 2020

Luckily, Levelset has detailed 4 steps to take after filing a mechanics lien

To give a quick overview, once you file a mechanics lien you should proceed with the following steps: 

1. Send a copy of the mechanics lien to everyone

2. Communicate with the person most likely to pay & then call the property owner 

3. Send a Notice of Intent to Foreclose

4. File a foreclosure lawsuit 

I hope that helps! 

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Dec 9, 2020

Once a mechanics lien has been filed, the ball is in the property owner's court. Now that they have received a copy, it's up to them to settle the payment dispute or potentially face foreclosure.

In Minnesota, a filed mechanics lien is only valid for 1 year from the date of last furnishing of labor/materials listed on the claim itself. If, after reaching out to them, no payment is made, it may be time to consider initiating foreclosure proceedings

One optional step many claimants take before this is to send a Notice of Intent to Foreclose. Consider it a final warning letter stating that if payment isn't made, they should expect a lawsuit to enforce the lien claim. This is usually enough to get things rolling on payment. If not, you may want to reach out to a Minnesota-based attorney to discuss enforcing your claim and other recovery options in more detail. 

Here are some additional resources you may find helpful:

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Dec 9, 2020
Foreclose on the lien within one year if they do not pay.
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