I have filed a mechanics lien and submitted all my paperwork, What are my next steps? I am due roughly $132K
1 reply
May 13, 2020
Mechanics liens will typically result in payment, but some additional recovery steps may be necessary. We'll discuss those steps some below, but this resource should be valuable to you, too: The 4 Steps to Take After Filing a Mechanics Lien.
Getting paid after filing a mechanics lien
For one, once the lien is filed, it's important to notify your customer, the GC, and the property owner that a lien has been filed and that you want to negotiate payment for the release of the lien. Generally, once a lien is filed, the parties will work together to try and resolve the payment dispute before any further action becomes necessary (though, it's also common for an owner to challenge lien claims filed against their property).
If the other parties on your project aren't taking the matter seriously, turning up the heat by sending a Notice of Intent to Foreclose can be useful, too. A Notice of Intent to Foreclose is basically just a threat to enforce the lien claim. Nobody likes litigation, so often, that will be enough to force payment.
Finally, enforcing a mechanics lien will become necessary in some situations. And, pursuing a lien enforcement action, other legal claims (like a breach of contract claim), or even sending the debt to collections could all result in payment. Of course, simply threatening to take those actions - with a payment demand letter - could be effective, all by itself.