Filing a mechanics lien is one of the most powerful tools in your toolbox when you're not getting paid for materials. But what happens after you file a lien?
Filing a lien gets everyone's attention
Mechanics liens are designed to get attention—and fast. Without a lien, your only option is to sue the party you contracted with, whether that’s a contractor or customer. But with a lien, you’re bringing the property owner, those higher up in the contracting chain, and even the surety bonding the project into the mix.
Here’s why liens get results:
- Ties up the property: A lien makes it nearly impossible for the property to be sold, refinanced, or transferred until your payment issue is resolved.
- Broadens your options: A mechanics lien allows you to pursue not just your direct customer but others connected to the project, including the property owner.
- Provides security: Your claim is no longer just a breach of contract—it's backed by the property itself, giving you stronger leverage.
This is often enough to get the property owner or contractor moving. In many cases, just the act of filing a lien prompts payment, and you won’t have to take further action.
What Happens After You File the Lien?
Now, let’s get into the nitty-gritty. Filing the lien is just the first step. Here’s what can happen after:
- Immediate Payment or Negotiation: Often, a filed lien creates enough pressure to force payment or start settlement negotiations. The property owner doesn’t want their project tied up, and the general contractor doesn’t want the hassle. You may receive payment or work out a payment plan without having to take additional steps.
- No Immediate Payment? Consider Foreclosure: If filing the lien doesn’t get you paid right away, you might need to enforce or foreclose the lien. This means filing a lawsuit to force the sale of the property, with the proceeds going toward paying you. The good news? As long as your case is active, your lien will remain valid throughout the legal process.
- Watch the Deadlines: Every state has specific time limits for when you need to enforce a lien. Miss that deadline, and your lien will expire. Some states allow as little as six months to a year for enforcement, so don’t let time slip by. Check your state's lien laws or work with a construction attorney to make sure you meet the deadlines.
- Lien Expiration: If you miss the deadline to enforce or foreclose your lien, the lien will expire, and you lose the security the lien provided. But that doesn’t mean you’re completely out of options. You can still file a breach of contract lawsuit against the party you originally contracted with, provided you’re within the statute of limitations for your state.
- Owner Forces Your Hand: In some states, including Florida, Georgia, and New York, the property owner can shorten your deadline by filing a notice, forcing you to enforce your lien sooner. Keep an eye on your mail for any such notices, as these can cut your window for action.
After the Lien Expires
If you miss your deadline to foreclose the lien, it’s not the end of the road. You may be required to file a lien release to clear the property title, but you can still pursue other legal options. Filing a breach of contract claim, while not as powerful as a lien, can still help you get the money you're owed—just make sure you're still within the statute of limitations.
Final Thoughts: Use Your Lien Rights Wisely
Filing a mechanics lien gives you serious leverage, but it’s only effective if you know the steps to follow. Make sure you understand your state’s enforcement deadlines and take action early to avoid missing your chance to get paid. And if the lien doesn’t do the trick right away, don’t be afraid to escalate by enforcing or foreclosing.
Keep track of your deadlines, be proactive, and don’t let payment disputes drag on longer than they need to. A well-timed lien can make all the difference.
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