You've filed a mechanics lien - now what? Most folks never have to take the official step of filing a mechanics lien to collect payment, and if they do, then typically the lien does the job of securing payment. Next, there is an even smaller percentage of liens that are escalated to legal, and the claimant forecloses on the property. There's a few measures that can be taken after filing a lien, and in this article, we'll cover how to file a notice of intent to foreclose in zlien and the benefits of this document.
What is a notice of intent to foreclose?
Many of you are already familiar with a notice of intent to lien and the proactive, collection benefits of that notice to help get you paid. Think of the intent to foreclose as a similarly useful document and a close cousin to the notice of intent to lien. The payment funnel for a job and the potential documents and actions available along the way are:
Notice of Intent to Lien
Notice of Intent to Foreclose
Although we're focusing on the intent to foreclose in this article, I've purposely emphasized your preliminary notices and notices of intent to lien above. That should be your focus to get paid faster, and it will decrease the number of times you need to file a lien and follow-up with a foreclosure warning.
Back to the intent to foreclose! Any party who has filed a lien may wish to warn the property owner and interested parties that they intend to initiate a foreclosure/enforcement action if the lien is not satisfied. This may be useful to prompt payment of the lien prior to needing to actually initiate a lawsuit. The document is clear and states that a lawsuit will be initiated if payment isn't made. Additionally, it gives directions for the recipient:
“ In order to avoid the foreclosure/ enforcement lawsuit please immediately contact the above-referenced Claimant [that will be you!] to arrange for payment of the amount due."
how to file a notice of intent to foreclose in zlien?
If you've already filed your mechanics lien, and you're still not getting paid, this document will always be available in your zlien account. In the new zlien, there are a few ways to get this document ordered, such as through the project page or by starting a new document.
In this example, we're pulling up a job from the "Projects" tab. The document will typically be named "Certified Notice of Intent to Foreclose" available under the section labeled "Something Else" in your documents menu:
When to file a notice of intent to foreclose?
Although this notice is optional, don't forget that your mechanics lien comes with a foreclosure deadline! Typically, a lien claim will be valid for a certain period time after filed or completion of work - depending on the state requirements. The lien will still remain on the property until a lien release/ cancellation is filed, but it will be more difficult to enforce your claim in court and foreclose on the property if you do not stay within the deadline.
zlien will calculate your foreclosure deadlines for you - you just need to follow the steps and take action when needed!