There are many issues that should be addressed before starting a foreclosure action. The financial is a big part, of course. Because foreclosures can be very expensive, easily in excess of $40,000, you need to consider the amount owed, your ability to fund the lawsuit, and whether there’s enough equity in the property to get your money back. If you prevail, you’ll take the property subject to any pre-existing liens, meaning you now have to pay the mortgage(s), property taxes, other liens recorded before your mechanics’ liens, and general maintenance of the property during the redemption period. The owner has the right to take the property back from you for 6 months after the sheriff’s sale by paying you all the money you’re owed plus the legal expenses awarded by the court. And, most people who don’t pay have a reason other than simply not having money; they think there’s a problem with your work. So, when you foreclose, they countersue for construction defects. Now you’re defending your work as well as trying to get paid.
Bottom line, you’ll want to work with an attorney familiar with mechanics’ lien foreclosures. You want to be sure you have all the information before you start a lawsuit so you don’t get caught up in something you weren’t prepared for. And there are strict timelines that must be adhered to; missing deadlines can result in losing your lien rights, or your lawsuit. If you’re considering a foreclosure, talk with an attorney sooner than later, before you miss any of those deadlines.
You just need to hire a lawyer and get into the details.