Mechanic's Lien Bond

When a lien is filed against a project or job, this can interfere with payments and many other aspects. One solution is to attain a Mechanic's Lien Bond.

The first step in this process is to have the courts determine what the required bond penalty (amount) will be. Once this is decided, a Mechanic's Lien Bond can be issued.

These bonds are meant to be a security in place of the property or contract funds that the lien is originally attached to. Once the bond is filed, the lien is considered discharged. This means that it will not interfere with project payments or have any bearing on the title of the property.

It is important to note that, even after a bond is obtained, the lien can still be enforced against the bond AND the contractor, and it can also still be foreclosed on by the lienor.