In the past few months, we have seen an in increase in a unique approach used by contractors to collect on mechanics liens. What the contractor does is delay the recording of their lien until after the new home is purchased by the resident owner. Once the property is sold, the lien is recorded, and enforced against the homeowner/resident.
The contractor takes this approach when the feel that the builder is not able to pay the debt. If they file a lien earlier, it would scare off potential buyers, and possibly prevent a sale.
This only works when there is no statutory time requirement for liens to be recorded. However, as builders face deteriorating sales and financial conditions, contractors are looking for any method to get paid.
