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CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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I placed a mechanics lien on a property. i just got a notice

Customer Question

i placed a mechanics lien on a property. i just got a notice of trustee's sale rcw61.24.040 . It says he property will be auctioned off to highest bidder. Will i get paid after the sale or will my lien go away? what does this mean?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

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A mechanic's lien is usually a junior lien (it comes later in time to the mortgage, the second mortgage, and any other liens that were placed on the property before you placed your mechanic's lien against the property).

It is possible that it is senior to some other lien (if someone placed a lien after you did), but it is unlikely that such a lender is the one foreclosing.

So, assuming that this is the case, and there is a more senior lien holder (a lender who recorded before you did, likely a mortgage lien holder), that is foreclosing on the property, your lien is unlikely to be paid.

The order of distribution in a trustee sale goes in this manner:

-Cost of sale (so the trustee's fees)

-First lien holder (usually a mortgage)

-Junior lien holders in order of priority (assuming there is any money left over from paying the first lien holder).

As you can see, unless the trustee's sale covers the full amount of all of the liens, plus the cost of sale, it is not common for very junior liens (such as the mechanic's lien) to be paid.

However, that does not mean your right to payment is erased, you can still sue the owner (whoever you contracted with to provide goods or services) for breach of contract and get a personal judgment which can be enforced with wage garnishment, bank levy, or personal and real property levies on other properties owned by the debtor. It just means that your mechanic's lien is no longer viable.

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