Mechanics Lien on Your Home? Learn How to Remove It Fast

A mechanics lien on your home can feel like a roadblock you never saw coming. You hire a contractor, pay them in full, and think the job is done. Months later, you find out their subcontractors or suppliers were never paid—and now there’s a legal claim attached to your property title.

For homeowners, this is a confusing, stressful, and frightening experience. A mechanics lien can:

• Delay or block a refinance
• Stop you from selling your home
• Lead to expensive legal issues if it’s not handled correctly

The good news: a mechanics lien on your home doesn’t have to ruin your plans. This 2025 guide explains what a mechanics lien is, how it happens, how it affects your mortgage or sale, and—most importantly—how to remove it fast and protect yourself in the future.

Important: This article is for informational purposes only and does not constitute legal advice. Mechanics lien laws are state-specific. Make sure to check with a lawyer in your state for any legal advice.

What Is a Mechanics Lien on Your Home?

A mechanics lien is a legal claim on your property made by a contractor, subcontractor, or supplier who hasn’t been paid for their work or materials. It attaches directly to your property title, making it impossible to sell or refinance until the lien is cleared.

For example:

• You hire a general contractor to remodel your kitchen.
• They bring in electricians, plumbers, and suppliers
• You pay the general contractor in full.
• The contractor fails to pay those subcontractors.
• A subcontractor puts a mechanics lien on your house.

Even though you have already paid, the unpaid subcontractor legally has the right to make a claim against your property. This is why mechanics liens are so frustrating for homeowners.

Why Do Mechanics Liens Happen?

Mechanics liens usually come from payment disputes. Common causes include:

• Contractor mismanagement – The general contractor uses your money for other projects or debts.
• Cash flow issues – The contractor doesn’t have enough funds to pay all subcontractors on time.
• Disagreements over work – A subcontractor claims they weren’t fully paid for completed work.
• Poor contracts – No written agreement or clear payment terms between contractors and subs.

Unfortunately, homeowners are the ones who end up paying the price.

How a Mechanics Lien on Your Home Affects You

A mechanics lien isn’t just a piece of paper—it creates serious problems:

• Title Issues – An active mechanics lien on your home prevents title companies from issuing insurance, complicating any potential sale or refinance. This can create significant hurdles for homeowners looking to transfer ownership or secure financing.
• Refinance Problems – When attempting to refinance, lenders mandate a clear title free from any liens. If a mechanics lien is present, it can result in the denial of refinancing applications or additional delays in the process.
• Sale Delays – Prospective buyers often hesitate to engage with properties encumbered by unresolved legal claims, such as mechanics liens. This can lead to prolonged negotiations or cause potential buyers to withdraw their offers altogether.
• Public Record – Mechanics liens are publicly recorded with the county, which means they remain visible to potential buyers and future lenders. This public nature can deter interested parties and negatively impact marketability.
• Possible Court Action – If the debt linked to the mechanics lien isn’t paid, the lienholders can take legal steps to get their money. This can worsen things and lead to more legal troubles or costs for the homeowner.

A mechanics lien on your home might not mess with your credit score immediately, but if it leads to a lawsuit or a judgment, it can hurt your credit. Problems like that can make it tougher to borrow money down the line and impact your overall financial situation.

Can You Still Get a Mortgage With a Mechanics Lien?

Yes, but it’s harder. Many lenders refuse loans when a lien appears during the title search. At Gustan Cho Associates, we work with homeowners every day who have liens on their homes.

Options may include:

• Escrowing lien funds during refinance or sale until it’s resolved.
• Paying off the lien at closing as part of the loan proceeds.
• Negotiating a settlement before the mortgage process is completed.

If you’re stuck, the key is working with a lender who understands navigating these complex situations.

Can You Sell a Home With a Mechanics Lien?

Yes, but it’s tricky. Here’s how it usually works:

1. The title company finds the mechanics lien on your home.
2. They require the seller to put the lien amount in escrow.
3. The sale closes, but the funds stay in escrow.
4. Once the lien is settled, the money goes to the lienholder—or back to the seller if the lien was invalid.

This process allows the sale to move forward, but creates delays and requires legal review.

How to Remove a Mechanics Lien From Your Home

If you already have a mechanics lien, don’t panic. Here’s a step-by-step process:

Step 1: Get a Copy of the Lien

To begin the process, obtain a copy of the lien from your county recorder’s office. Once you have the document, carefully review it for any errors, verify the amount stated, and check the information regarding who filed it.

Step 2: Talk to the Contractor

In the next step, engage with the general contractor to arrange for the payment to the subcontractor or supplier. It’s important to request proof of payment or a lien release to ensure that the transaction is properly documented and that there are no outstanding claims against the property.

Step 3: Negotiate Settlement

When negotiating a settlement with lienholders, it’s important to remember that many are often willing to accept less than the full amount owed. Always get any agreements in writing to ensure clarity and protect your interests.

Step 4: Hire an Attorney (if needed)

In Step 4, if the lien on your property is fraudulent or exaggerated, it is wise to hire an attorney to contest it in court. An attorney can provide the necessary legal assistance to challenge the validity of the lien. Additionally, you may have the option to “bond off” the lien, freeing your title and regaining control of your property.

Step 5: Record a Lien Release

After the lien has been settled or paid, the lien claimant needs to file a release to officially remove the lien. Following this, it is important to follow up and confirm that the lien has been successfully removed from your property record.

What Is a Lien Waiver?

A lien waiver is basically a paper that a contractor, subcontractor, or supplier signs to say they’ve been paid and won’t come after you for a lien. It’s a good move to get this sorted out before you make that last payment.

• Ask your general contractor for a list of all subcontractors and suppliers.
• Collect lien waivers from each one.
• Keep proof of payment.

This is the single best way to protect yourself from a mechanics lien on your home.

Mechanics Lien Laws by State

Lien rules vary widely depending on your state. Here are a few examples:

Illinois

In California, if you want to file a mechanics lien, you first need to send a preliminary notice to the property owner. This step makes sure everyone knows what work is being done and that there’s a chance of liens popping up to get paid.

California

In California, if you’re dealing with a mechanics lien, you first need to send a preliminary notice to the property owner before you file the lien. This step ensures everyone knows what work is happening and that liens might come into play to secure payment.

Texas

There are tight deadlines for filing mechanics liens in Texas, which means you have to submit your claims within certain time limits. If you miss these deadlines, your lien can get thrown out, so acting quickly is crucial.

Florida

In Florida, subcontractors must file their mechanics liens within 90 days of completing their last work on a project. This time limit encourages prompt action among subcontractors to secure their rights to payment.

New York

In New York, mechanics liens generally expire one year after being filed unless extended by a court order. This one-year limit means lien holders must be vigilant about following up and potentially renewing their claims to ensure they remain enforceable.

Always check your state’s laws before starting a major renovation.

Preventing a Mechanics Lien on Your Home

Prevention is always cheaper than removal. Tips:

• Get everything in writing (contract, scope, payment schedule).
• Request preliminary notices from contractors and subs.
• Collect lien waivers with every payment.
• Pay by check or credit, not cash.
• Keep a record of all invoices and receipts.

If you’re financing renovations with an FHA 203k rehab loan or similar program, lenders often require lien waivers before releasing funds—an extra layer of protection.

Cost to Bond Off a Mechanics Lien

If you prefer not to pay a mechanics lien directly, you can bond it off by obtaining a surety bond that generally covers 1.5 to 2 times the lien amount. For instance, if you have a $20,000 lien, you would need to secure a $30,000 bond. The cost of this bond typically ranges from 1% to 3% of its value per year, so at a rate of 2%, you would be looking at an annual expense of around $600.

By bonding off the lien, you can clear your property title while resolving the underlying dispute. This process allows you to maintain property ownership without paying the lien amount upfront.

Buying a Home With a Mechanics Lien

If you’re considering a property with a lien:

• Ask the seller to resolve the lien before closing.
• Work with a title company that can escrow funds if necessary.
• Never take ownership until the title is clear.

Sometimes, a lien may not be a deal-breaker—but you must protect yourself legally.

Mechanics Lien vs. Judgment Lien: What’s the Difference?

A mechanics lien is a legal way for contractors, subcontractors, or suppliers to claim payment when they haven’t been paid for their work or the materials they provided on a project. It acts like a safeguard, giving these folks a legal right to get their money for their contributions.

A mechanics lien on a property can make selling or refinancing it a pain, since it needs to be sorted out first.

Conversely, a judgment lien comes from a court decision after a creditor takes a debtor to court for unpaid debts. This lien is the creditor’s way of saying they have a claim on the debtor’s property to help get back what’s owed. Like a mechanics lien, a judgment lien can affect the property title. This means you must clear it up before refinancing or selling the property. It’s important to address both types of liens when dealing with real estate transactions.

Final Thoughts: Don’t Let a Mechanics Lien Stop You

A mechanics lien on your home can feel like a nightmare, but it doesn’t have to end your plans. With the right steps—lien waivers, negotiations, bonding off, or refinancing with escrow—you can move forward.

At Gustan Cho Associates, we focus on helping homeowners and buyers tackle title problems, like mechanics liens. We’re licensed in all 50 states and don’t have those extra lender rules, so we can close loans that other banks and lenders can’t handle.

Call us at 800-900-8569 text us for a faster response, or email alex@gustancho.com. We’re available 7 days a week, evenings, weekends, and holidays.

Don’t let a mechanics lien block your refinance or sale. Let our team help you clear the lien, close your loan, and move forward with confidence

Frequently Asked Questions About Mechanics Lien on Your Home:

What is a Mechanics Lien on Your Home?

A mechanics lien is a legal claim filed by someone who worked on your home or supplied materials but says they weren’t paid. It attaches to your property title and can interfere with the sale or refinancing of your home.

Why is There a Lien on My House if I Already Paid the Contractor?

You may have paid your general contractor, but they may not have paid their subcontractors or suppliers. Those unpaid parties can still file a mechanics lien on your home in many states.

Can a Subcontractor File a Mechanics Lien Without Telling Me?

In many states, yes. A subcontractor or supplier can file a mechanics lien even if you never hired them directly. Some states require a preliminary notice, while others do not. That’s why collecting lien waivers is so important.

Can I Still Sell My House if There’s a Mechanics Lien on it?

Yes, but you’ll typically need to pay off, settle, escrow, or bond off the mechanics lien before the buyer’s lender will allow the closing. The title company will walk you through what’s required.

How do I Remove a Mechanics Lien from My Home?

Usually, you must:

1. Get a copy of the lien
2. Negotiate payment or settlement
3. Have the lienholder sign a release
4. Record the release with the county

If the lien is fraudulent or invalid, consult an attorney to discuss challenging it.

How Can I Avoid Getting a Mechanics Lien on My Home in the Future?

• Use detailed written contracts
• Request preliminary notices where required
• Collect lien waivers with every payment
• Avoid cash—pay by check or electronic methods
• Keep thorough records of all payments and communications

Can I Refinance My Home if it has a Mechanics Lien?

You may be eligible for refinancing if the lien is paid off or escrowed at closing. At Gustan Cho Associates, we frequently assist borrowers in structuring refinances when a mechanics lien on the home is discovered during title work.

What Should I do if I Find a Mechanics Lien on a House I Want to Buy?

Ask the seller to resolve the lien before closing. Work with a reputable title company and do not close until you are sure the mechanics lien will be released or bonded off as part of the transaction.

Do Mechanics Liens Expire or Go Away on Their Own?

In some states, a mechanics lien expires after a specific time if the lienholder doesn’t file a lawsuit to enforce it. In other states, it can sit on title until it is released. Because rules vary, check with a local attorney or title company.

Can I Get a Mortgage with a Mechanics Lien on My Home?

Sometimes yes—but it’s more complex. Many lenders will require the lien to be paid, settled, or escrowed. At Gustan Cho Associates, we work with borrowers every day who have title issues like mechanics liens and need creative solutions to move forward.

This blog about “Mechanics Lien on Your Home? Learn How to Remove It Fast” was updated on December 9th, 2025.