A previous post on this blog talked about an unusual foreclosure action in which a municipality is foreclosing on a piece of property because of unpaid fines. This is just one example of a situation in which a foreclosure involves a lien that is not a mortgage. While most foreclosures involve mortgages that have fallen delinquent, there are in fact many other ways in which a person or business can obtain a lien over a piece of property.

As is the case with mortgages, the holder of a lien can elect to foreclose it, meaning the lienholder will, if unchecked, be able to force the sale of the property so it can receive the money it is owed. One common example of these types of liens is a mechanic’s lien. Those who work on a home or business property by remodeling, improving or adding to it may prepare, record and, ultimately, foreclose a mechanic’s lien if they do not get paid.

In some cases, a homeowner or business owner in Coral Springs or other parts of Southern Florida may fall behind in paying for a construction project. In these sorts of cases, the best foreclosure defense may be to work out a compromise with the contractor.

However, sometimes a property owner has every incentive to fight against a mechanic’s lien. For example, sometimes the reason the owner does not pay for a construction project is because the work has not been properly completed or this is some other dispute. In other cases, it is a subcontractor who files the lien because the contractor did not pay, even if the property owner is caught up on the bills.