We know that after filing a mechanic’s lien there is a certain amount of time in which an action to enforce the lien must be initiated, or the lien will become ineffective. We also know that, in at least some states, the initiation of arbitration (instead of a foreclosure action) works to meet this deadline. [...]
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Funnel Graphic Shows How Mechanics Lien Claims Are Resolved
People often ask me about what happens after a mechanics lien is filed. It’s an understandable question because no one enjoys the process of filing a mechanics lien and creating a potential adversarial situation. The questions are really these: It the mechanics lien going to work? It is going to get me paid? Is it [...]
Should You Sue Your Customer? What About A Mechanics Lien?
Kudos to Dean Kaplan of the Kaplan Group (@TheKaplanGroup) for putting together an awesome infographic visually guiding folks “through the process of determining if they should file a lawsuit when all other avenues have failed to resolve the collection problem.” I think the infographic is bloody good. In fact, when I recommended it on Google Plus [...]
Is Foreclosing A Mechanics Lien Worth It?
Here is a secret about mechanic lien claims: they very, very rarely result in a piece of property getting put up for auction and sold. You can draw one of two conclusions from this statement. Either foreclosure doesn’t happen because liens as so successful at getting claimants paid the process never gets that far, or [...]
Maine Mechanic’s Liens Potentially Have Priority over Mortgage
If the filing of a mechanic’s lien does not facilitate payment to the lien claimant, the lien must be foreclosed. One of the issues faced in a foreclosure action is: What happens when the sale of the property does not provide enough money to satisfy all claimants? When this situation occurs, the secured parties are [...]
When Must An Arizona Mechanics Lien Be Served On The Owner?
In many cases, Arizona’s mechanics lien law is very similar to California’s mechanics lien law. However, the two statutory schemes are substantially different when it comes to the timeframe for serving a mechanics lien. Recent changes to California’s mechanics lien laws mandated that lien claimants serve the property owner with a copy of the mechanics lien simultaneously with the [...]
Effective Period of Indiana Mechanic’s Lien Can be Shortened – Watch Out
As Scott and I have mentioned many times on this blog – mechanic’s liens do not last forever. At some point, the lien claimant is required to initiate foreclosure proceedings (or, occasionally other enforcement proceedings) or the lien will expire. Also, as we have noted, the time a lien will encumber property before the deadline [...]
Idaho Liens May Attach Earlier Than You Think for Priority Purposes
If a mechanic’s lien claimant is not paid, there comes a time when the lien claimant must foreclose on the lien or the lien claim is extinguished. While the time period for this action varies by state, the requirement that a lien must be foreclosed or it will eventually expire does not. If a foreclosure [...]
Georgia Mechanics Lien: What It Means To Enforce Your Lien
As regular readers of this site are undoubtedly aware, mechanics liens are not valid forever. At some point, the exact time varies by state, the mechanics lien is extinguished if no action has been undertaken to enforce it. In many states, this type of requirement is synonymous with a lien foreclosure action. In Georgia, however, [...]
California Appeals Decision Illustrates Danger of Leaving Parties Out Of Foreclosure Action
The California Court of Appeals issued a fairly routine decision this week as part of an unpublished opinion in Dynamic Commerial Plumbing v. Preferred Bank. The decision offers nothing ground-breaking, which is typical of unpublished decisions. However, it does present a good reminder to mechanics lien claimants related to their foreclosure actions. Just as there [...]
What To Do After You File A Mechanics Lien
Filing a mechanics lien is an effective way to get paid if confronted with a non-paying project, but that doesn’t mean you can just file the lien document and forget about it. Like anything else, follow-up is required. Step 1: Send The Mechanics Lien To Everyone This one is a no-brainer. In many cases, state [...]
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Scott Wolfe Jr., JD
CEO of Zlien, and a licensed attorney in six states, he's experienced in construction & corporate credit management laws....Read More
Nate Budde, JD
Zlien's Chief Legal Mind and licensed attorney. Nate is a Stanford & Tulane Grad, a Jeopardy! alumni and more....Read More
Seth Smiley, JD
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