Hundreds of thousands of contractors and suppliers file mechanics liens every year in the United States in the face of non-payment, and they probably wonder each time: Is this going to get us paid? The fortunate answer, according to a survey conducted by Zlien, is yes.
According to a survey of mechanics lien claimants in 2011 across the United States, over 64% of mechanics liens are paid without the need for foreclosure or any additional legal action. In other words, the lien filing itself and alone prompts payment. And mechanics liens are paid fairly quickly, with 82% of these claims being paid within just three months after filing.
"I think this speaks to the power of the mechanics lien," comments Scott Wolfe, Zlien's chief executive. "Most companies file mechanics liens as a last resort, having gone unpaid on a project for weeks or months. They file their mechanics lien, and get paid almost immediately. That's impressive."
While 64% of mechanics liens are paid without any further legal action, that doesn't mean the remaining liens go unpaid. To the contrary, an additional 18% of lien claimants were involved in foreclosure litigation related to their mechanics liens and anticipated eventual payment. The remaining had not yet written off the lien as bad debt.
Zlien has visualized its survey data in a Mechanics Lien Infographic. The graphic not only visualizes data from the survey about the effectiveness of mechanics lien filings, but also provides a history of the mechanics lien and a chart of the preliminary notice, mechanics lien and lien foreclosure deadlines across the United States.
Zlien automates the process of filing mechanics liens, bond claims, stop notices, preliminary notices and notices of intent to lien for those in the construction industry, electronically recording any of these documents for one flat fee. Learn more at http://www.zlien.com.