The purpose of a Mechanic’s Lien:
A Mechanics Lien is a Contractor, Subcontractor or Suppliers claim against the interest of a property Owner for the value of his work that has not been paid for. It gives an unpaid contractor certain rights against the property of an Owner, including, just like a bank that has a mortgage on real estate, the right to foreclose on property and force the property's sale to make sure that the contractor gets paid.
Why file a Mechanic’s Lien
If a mechanic’s lien is not filed within the set deadline, which varies by state, you will lose your lien rights. When filed properly, including the previous steps, a mechanic’s lien gives you a claim on the property. If the owner tries to sell or refinance their house all liens must be satisfied first. It forces the owner to pay in certain situations, unlike judgments. In addition, if you have a proper lien in place you have the right to force foreclosure and purchase the property. No property owner wants to deal with these actions and therefore you can see the power that this can give you when it comes to getting paid.
When to file a Mechanic’s Lien
The timeline for filing a lien starts from your last day of “major work.”
In Minnesota 120 days
In Wisconsin 180 days (remember the Notice of Intent is required at least 30 days prior)
*We can file mechanic’s liens in most states