In a lien on a property, you get to have a right on a property as a form of security for the debt someone owes you. Getting a lien is time consuming, and the laws vary per state, but the lien will provide a collateral to the debtor to pay their debt.


There are two types of lien to file on properties:


Mechanic’s Lien

This type of a lien is very common, and it is also referred to as “construction lien” as contractors or construction firms usually file them. Roofers, plumbers, carpenters, painters, or basically anyone who works on the property uses this type of lien. Basically when a contractor takes a job on the property, they make a contract with the owner in which it states the owner has to pay the agreed price after the completion of the work, or they file for a Mechanic’s Lien. If the date isn’t paid off, the court grants permission to the contractor to take possession of the improved property. This lien is placed with an attorney through the courts.


Judgement Lien

In this type of lien, like the Mechanic’s Lien, a creditor can take hold of a debtor’s property. The only difference between the two liens is that in a Judgement Lien, the creditor doesn’t place a lien due to some work they performed, but it is in fact filed when the debtor hasn’t paid for some other bill. The procedures and laws for both liens will therefore, vary. In this lien, the debt needs to be collected through a debt collector, and then a local attorney needs to be contacted for further assistance.