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Debt Relief – Insolvency – Bankruptcy Information » Foreclosure Help » What power does a mechanics lien have in the process of foreclosure in Illinois?

What power does a mechanics lien have in the process of foreclosure in Illinois?

We know what a mechanics lien is, but what kind of power does it have when you are buying a foreclosed house? Can you tell me where to find a book about homes in foreclosure with mechanics liens on them in Illinois?

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4 Responses to "What power does a mechanics lien have in the process of foreclosure in Illinois?"

  1. wizjp says:
    Must be released before any clear title can be conveyed.

    Standard real estate law.

  2. Paul in San Diego says:
    When the foreclosure occurs, the lien holders apply to the foreclosing entity (most likely the holder of the first mortgage) for their money owed. If they can’t reach an agreement, the case goes before a judge, who decides who gets what.
  3. foreclosurefish_com says:
    A mechanic’s lien would work just like any other type of lien on a foreclosed home. You won’t be able to buy the home with a clear title until that lien is released.

    The mortgage company probably will not extend you a mortgage until that lien is cleared off the title. Lenders want their lien to be first in priority, so all other liens must be gone.

    It is really up to the current owner of the property (probably the foreclosing bank) to get the mechanic’s lien paid off. But they can do this through the purchase price that you offer them.

    If the bank owns the house, but there is a $10,000 mechanic’s lien on it, and you offer the bank $120,000 to purchase the home, the bank should take $110,000 for itself and pay off the mechanic’s lien.

    Hope that helps.
    ForeclosureFish

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