What is a Mechanics Lien?
Tuesday, February 21st, 2012
There are several things that you need to understand about a mechanics lien before you either file or have one filed against you. The first thing that you need to understand is just what this type of lien does and under what circumstances a contractor can file mechanics lien against your home or property. A mechanics lien is a lien against your home or property that can be filed if you fail to pay a contractor or sub-contractor fees and other monies due to them as a result of work accomplished.
This basically means that if you hire someone to build a house on your property or to improve an existing home then fail to pay, the contractor can file mechanics lien against your home which could force the foreclosure and sale of your home without your consent.
That does not mean however that if a mechanics lien is placed against your home that you do not have the opportunity to help settle it. You will always be notified when this type of lien is put against your property and upon notification you can pay your outstanding balances to help get the lien settled.
There are a very few circumstances that warrant this type of action, the first being non-payment within the terms of the contract that you signed. If for instance you get your home worked on and you have a month after completion to pay, a contractor cannot file until that period of time has passed or you have worked out an alternative deal.
Some contractors may also contact you prior to filing a lien to make sure that it is the only option that they have when it comes to collecting their pay. Generally if you stay on top of your bills you will not have to worry about dealing with a file mechanics lien.




