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What is the next step after Mechanical Lien is filed

MinnesotaLien ForeclosureMechanics Lien

We filed a mechanical Lien against a customer that refused to pay. What is the next step?

2 replies

Nov 5, 2020

Once a Minnesota mechanics lien has been filed, it will only be effective for a period of one year from the date listed as the "date of last furnishing labor or materials to the project" listed on the lien claim. An enforcement/foreclosure action must be initiated within that time frame, or the claim will expire and no longer be enforceable. 

One particularly effective step you can take before consulting with an attorney about filing the foreclosure action, is to send a Notice of Intent to Foreclose. Consider it a final warning that if payment isn't forthcoming within x amount of days you are ready and willing to enforce your rights in court. The threat of litigation is typically enough to get the owner's attention.

For more on this and other options, here's a quick video that may prove useful: 4 Steps To Take After Filing a LIen 

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Nov 6, 2020
You have to now bring a law suit foreclosing on the lien. It must be done within one year. You should run an owner and encumbrance report to make sure there is equity. You do get all your attorney fees if you win.
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