A mechanic's lien — a lien permitted by statute which secures payment for work done or materials furnished in connection with a construction job — can be a very important tool for a contractor, subcontractor, or materials supplier attempting to collect payment. It will get the immediate attention of not only the property owner, but the owner's mortgage lender. But it must be executed and filed correctly to be effective. Here's an example of how a mechanic's lien works: Harry Homebuilder is developing a residential subdivision. Frank's Foundations poured the foundation for the first home built. Harry has contracted to sell the home to Bob and Barbara Buyer. But Harry is having some cash flow problems, and has not paid any of
