U.S. mechanics lien filings have risen significantly since the COVID-19 pandemic shut down all but the most essential projects in many states, according to notice and lien service provider Levelset.
just as in the Great Recession, which took hold approximately 12 years ago, more contractors are taking advantage of the legal tools available to them in order to secure payment in an uncertain time. It is likely, that once contractors avail themselves of their legal rights in pursuit of payment, they will continue to do so long after the pandemic has passed.
A lien release bond may be required to remove existing liens from a property. This should only be considered an option if it is believed by the property owner that the lien either has already been satisfied or should not be on the property. The surety bond allows for the lien to be removed from the property and instead attached to the surety bond.
A release of lien bond creates a financial guarantee for lien holders with valid liens and makes courts feel more comfortable about removing a lien from a property. It’s a sign of accountability for property owners who need to prove that they’re trustworthy.
When applying, the following information should be included for faster bonding.
1) A completed court bond application – Will provide basic information of the bond being requested, as well as information on the principal requesting the bond.
2) Copy of the mechanic’s lien – A copy of the mechanic’s lien can be uploaded in the online application and will provide information about the amount of the lien and the parties claiming that payment is still due.
Call us at 800.921.1008 to speak with a professional regarding your specific situation or apply below for a quick turnaround on your Mechanic’s Lien Release Bond.
