A mechanics lien is a legal document, filed with the courts, to attach a lien to the property that you have done work on, but have not been properly compensated for. For example, you did roofing work and the check from the customer bounced. They have been unable to make proper arrangements with you for the payment, so you have the option of putting a lien against their house. But what does this do? How can this really benefit you, as the contractor? Take a little time to review the following reasons to look into mechanical liens:
It Shows That You're Serious
You want to make sure that the people that owe you or your company money understand just how serious you are about collecting the debt. You did the work and you need to be paid for it. Most people start to understand that this isn't going to be some random debt that disappears into the background. You intend to get your money, even if it means putting a lien against their house. The people that owe you money may try to come up with the cash to pay the bill instead of risking losing their home.
It Can Be The Starting Point
If you intend to take this through the court system, such as forcing a foreclosure on their home for all of the liens that they have not paid, you want to begin with a mechanic's lien. While it can vary from one state to another, the beginning of the mechanical lien will serve as a starting point. There will be a set number of days, weeks, or even years from that lien onset date before you can take additional action. Even if you are not yet sure you want to take things that far, it is better to have the lien in place than to not have it at all. Worse case, when the owners finally sell their home, your lien will be paid off before they can get any proceeds.
Now that you have all of that in mind, you should find that it is going to be a lot easier for you to decide to move forward with the filing of a mechanic lien. While this is something that you can do yourself, it might not be something you want to do. It is imperative that the forms for the lien are filled out correctly and that they are properly submitted to the courts. If there are any mistakes, it could cost you greatly, such as no longer being able to get the money you are owed.
For more info about mechanical liens, contact a local company.