Mechanics Lien Foreclosure: How to Actually Collect

Recording a mechanics lien is a warning — foreclosure is the enforcement action. You have 90 days from recording to file a lawsuit to foreclose, or the lien expires and you lose your security interest in the property.

The 90-Day Foreclosure Deadline

Under California Civil Code §8460, you must file a lawsuit to foreclose your mechanics lien within 90 days of the date of recording. This is a strict statute of limitations — courts do not grant extensions, and missing this deadline releases the lien as a matter of law.

There is one exception: if the owner and the lien claimant enter into a written agreement to extend the period, signed before the 90-day deadline expires, the foreclosure period can be extended. The extension agreement must be recorded with the county recorder.

What a Foreclosure Lawsuit Involves

A mechanics lien foreclosure is filed in the superior court of the county where the property is located. The complaint names the property owner, the original contractor (if different from the defendant), and any other lienholders or encumbrancers on the property. The lawsuit seeks a judgment and a court order directing that the property be sold to satisfy the lien.

Key elements of the lawsuit include:

• Proof that the claimant furnished labor, services, or materials to the project
• Proof that the preliminary notice was timely served (for subs and suppliers)
• Proof that the lien was timely recorded and properly served on the owner
• Documentation of the amount owed (invoices, contracts, pay applications)

Does This Mean My Property Will Be Sold?

Not necessarily. Most lien foreclosure lawsuits settle before reaching a forced sale. The filing of the lawsuit alone — combined with the prospect of a judgment and forced sale — typically creates strong incentive for the owner to pay or negotiate seriously.

If the case does proceed to judgment and the owner still does not pay, the court can order the property sold by the sheriff or court-appointed referee, with proceeds applied to satisfy the lien.

Priority of Lien Claims

When multiple liens are filed on the same property, priority is determined by the date of commencement of the work of improvement — not the date of recording. All mechanics lien claimants on the same project generally share the same priority date (the date the first work on the project began), and if the property sale proceeds are insufficient to pay all claims, they share pro rata.

Attorney's Fees

California Civil Code §8800 allows the prevailing party in a mechanics lien action to recover reasonable attorney's fees in some circumstances. An experienced attorney can advise you on whether fee recovery is likely in your case.

Frequently Asked Questions

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