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Foreclosures to settle a construction lien

If you are a contractor in Idaho, consider asking a property owner to sign a construction lien before you start work on their property. This legal agreement allows you to foreclose on their property if they do not pay you for the completed work. The lien will show up if the property owner tries to sell the property before paying you.

File the mechanic’s lien

Construction mechanic liens are governed by state law. In Idaho, you have 90 days to file the lien after you last worked on the project or supplied materials with the county recorder’s office. You can mail, fax or hand deliver the notice to the office. In some counties, you can do the process electronically.

Give a copy to the property owner

Within five days after filing, you must give the property owner a copy of the lien. You can hand deliver the notice or send it by certified mail to the last known address.

Notice of Intent to Lien

If you are still waiting to receive payment, you need to send or give the property owner another letter, which serves as a final request for payment.

Gather documentation

You must gather evidence to show in court that you are owed the money sought in the construction lien. Possible documents include bids, signed contracts, preliminary notices, payment applications, payment records, payment reminders and your lien documents.

File a lawsuit

You must file a lawsuit within six months of filing the lien unless credit is extended. Then, a court date will be assigned, and you must present your evidence to a judge.

If you win your case, the last step is that the property will be sold to satisfy your lien. Then, you will be paid from the proceeds of the sale.