Lien Foreclosure

Here, you can find all of our articles about lien foreclosure in construction. Lien foreclosure describes the process of enforcing a mechanics lien.

Usually, simply sending a notice of intent to lien or filing a mechanics lien will be enough to spur payment. However, in rare cases, you’ll need to enforce your mechanics lien to secure the money you’re owed on a project. This entails initiating a lien foreclose action, which is, in effect, a lawsuit. With that in mind, it’s almost never a good idea to represent oneself, let alone begin the process without any professional legal guidance. Furthermore, companies or LLCs aren’t legally allowed to do so in most states.

Foreclosing on a lien follows the same process as a lawsuit. This means it takes, money, time, and quite a bit of effort. If successful, the judge will order the sale of the property in order to satisfy the unpaid amount to the contractor. The sale usually takes place via a judicial auction organized by the sheriff. Even if sold quickly, payment could take some time, and if the foreclosure fails altogether, the contractor gets nothing.

Lien foreclosure is in many ways a last resort. That said, it’s always a good idea to learn how to use lien foreclosure to get paid just in case the situation arises at some point in your career. If you need help with lien foreclosure, whether you’re at the top of the payment chain or at the bottom, you can browse the articles about lien foreclosure below.

Alternatively, you can ask a question about lien foreclosure at the Expert Center to get an individual piece of advice from a construction attorney, free of charge.

Most Recent Posts on Lien Foreclosure

What Is “Enforcing” a Mechanics Lien?

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In some cases, however, filing the lien isn’t enough to prompt payment or at least, to encourage the disputing parties to negotiate a mutually satisfactory remedy that solves the issue....

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