Most everyone nowadays understands that the mortgage on your home is a form of a lien. Liens affect ownership of the property, and until you pay it off in full, the lender owns an interest in it. This form of security ensures that if you fall behind in mortgage payments, the lender can take a form of recourse. Most often this is done by initiating foreclosure procedures in order to gain full ownership of the property once more.
If you know that a mortgage is only one of several ways your property can be encumbered, you'd be ahead of most people, in terms of knowledge. Sometimes direct contact is required with the builder when you're constructing your new home. On the other end of the spectrum, maybe you already own a home but want to touch base with a builder about making improvements to it. If you plan to pay in monthly installments, that's when a mechanics lien might be formed to encumber your property.
A mechanics lien is a form of security interest in the title of your property, much like a mortgage. Any supplier of labor or materials going toward the improvement of your property can benefit from it. Both personal and real property can have liens put in place to secure them.
Construction liens, materialman's liens or supplier's liens are all other names for a mechanics lien against real property. It is often known as a laborer's lien for people who supply the labor. It has been called a design professional's lien, in reference to those who design the improvement such as architects.
Varying by state, mechanics liens exist exclusively by way of legislation. Performance of labor or when a supplier hands out material that goes toward the property's improvement is how the lien is generally created. Enforcement of mechanics liens are performed through judicial foreclosure sales, much like mortgages. So the mechanics lien can be paid with the proceeds, a court could order the property in question to be sold in a foreclosure sale, if left unpaid.
If you know that a mortgage is only one of several ways your property can be encumbered, you'd be ahead of most people, in terms of knowledge. Sometimes direct contact is required with the builder when you're constructing your new home. On the other end of the spectrum, maybe you already own a home but want to touch base with a builder about making improvements to it. If you plan to pay in monthly installments, that's when a mechanics lien might be formed to encumber your property.
A mechanics lien is a form of security interest in the title of your property, much like a mortgage. Any supplier of labor or materials going toward the improvement of your property can benefit from it. Both personal and real property can have liens put in place to secure them.
Construction liens, materialman's liens or supplier's liens are all other names for a mechanics lien against real property. It is often known as a laborer's lien for people who supply the labor. It has been called a design professional's lien, in reference to those who design the improvement such as architects.
Varying by state, mechanics liens exist exclusively by way of legislation. Performance of labor or when a supplier hands out material that goes toward the property's improvement is how the lien is generally created. Enforcement of mechanics liens are performed through judicial foreclosure sales, much like mortgages. So the mechanics lien can be paid with the proceeds, a court could order the property in question to be sold in a foreclosure sale, if left unpaid.
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