
Episode #33
Do Not Let Your Lien Die
A filed lien is not the finish line. Karalynn and Jess explain what happens after a lien is recorded, when it makes sense to wait for a sale or refinance, when foreclosure is necessary, and how deadlines, costs, and proper procedure determine whether your lien becomes real leverage or expires. Learn more about The Cromeens Law Firm here ! Grab Karalynn's new book Trust Your Gut here . Follow Karalynn Cromeens on Facebook here . Follow Karalynn Cromeens on Instagram here . Follow Karalynn Cromeens on LinkedIn here . Watch the show on YouTube here . Key Takeaways 1. A valid mechanics lien gives a contractor a secured interest in the property, making it far more powerful than an ordinary breach of contract claim against the party that hired you. 2. On new construction with a construction loan, waiting for permanent financing or an upcoming sale can be a smart collection strategy because liens generally must be resolved before the transaction closes. 3. Existing properties that are unlikely to sell, including many apartment complexes, may require a lawsuit to foreclose the lien because the owner has little incentive to resolve it otherwise. 4. Lien enforcement deadlines are strict and cannot be renewed, so contractors must calendar the deadline to file suit before their lien becomes unenforceable. 5. Filing or enforcing a lien incorrectly can cost more than the unpaid invoice because an invalid lien can lead to removal actions, attorney's fees, and damages for interfering with a property sale. Timestamped Overview 00:02 Intro to lien enforcement 00:27 What to do after a lien is filed 00:58 How often liens require enforcement 01:13 Waiting for permanent financing on new construction 02:29 What a lien means for a property 02:32 Secured debt versus unsecured debt 03:52 When apartment complex liens require a lawsuit 04:41 Why liens expire and cannot be renewed 04:48 One-year deadline to enforce a Texas lien 05:31 Suing the owner, GC, or both 06:34 Expired liens and title company calls 07:29 Calendaring the lien enforcement deadline 08:06 Costs of lien foreclosure litigation 09:29 Subscription litigation pricing and predictable costs 10:38 Making a business decision on smaller lien amounts 11:30 How consistent notices reduce lawsuits 12:57 The cost of walking away from a lien 13:40 Counterclaims and the risk of starting litigation 14:00 Why contractors should not represent themselves 15:02 Common errors that invalidate liens 17:47 Starting collections and negotiations early 18:30 When foreclosure makes financial sense 19:32 What happens when an owner bonds around a lien 20:34 Litigation subscription options 22:01 Closing legal disclaimer

