lien foreclosure

Mechanics Lien Priority: Where You Stand When the Property Sells

A mechanics lien attaches to the project property, but when the property gets sold or foreclosed, it matters what order the liens get paid in. Construction lien priority rules — which lien gets paid first — vary by state and often don't follow the order you'd expect. A contractor holding a valid lien can still end up with nothing if prior-recorded mortgages take everything in a foreclosure.