Can a Common Law Lien Prevent Foreclosure?

Full question:

What is a Common Law Lien for Prevention of Foreclosure? How is it filed, or the procedure required to file this lien?

Category: Real Property
Subcategory: Foreclosure
Date: 04/07/2025
State: Alabama

Answer:

This sounds like a marketing scam. By definition, a common law lien isn't filed, it is based on principles developed through case law.

Priority of liens is generally determined by the date of recording. Often, the lender will have priority over any later filed liens (junior creditors), and the liens junior creditors hold will only be able to be collected out of any remaining proceeds after the mortgage holder is paid. If the property securing the mortgage is sold in foreclosure and no proceeds remain to pay junior creditors, it is possible the junior creditors could attach other assets of a judgment debtor.

Please see the information at the following link for further discussion:

http://openjurist.org/290/f3d/1166/united-states-v-l-weaver

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a contractor put a lien on your house without a contract?

In most cases, a contractor cannot place a lien on your property without a contract. However, some states allow contractors to file a lien if they have provided services or materials, even if a formal contract is not in place. This is often referred to as a 'mechanic's lien.' It's important to check your state's specific laws regarding this issue to understand the requirements and protections available to homeowners.

Can someone put a lien on my house without me knowing?

Yes, it is possible for someone to place a lien on your property without your knowledge. This can happen if a creditor files a lien due to unpaid debts or judgments. While the lien must be recorded with the county, homeowners may not always be notified. It's advisable to regularly check public records or consult a legal professional if you suspect a lien may have been placed on your property.

What is a common law lien?

A common law lien is a legal right or interest that a creditor has in another person's property, arising from case law rather than being formally filed. It allows creditors to claim property as security for a debt. Unlike statutory liens, common law liens do not require a specific filing process, but their enforcement and priority depend on state laws and the circumstances surrounding the debt.

Who can file a lien in Georgia?

In Georgia, various parties can file a lien, including contractors, subcontractors, suppliers, and property owners. To file a lien, the claimant must provide a written notice of the lien and comply with the state's legal requirements, including deadlines for filing. It's important to follow the specific procedures outlined in Georgia law to ensure the lien is valid and enforceable.

What is a lien on a foreclosure?

A lien on a foreclosure refers to a legal claim against a property that is being sold due to unpaid debts. When a property is foreclosed, the mortgage lender typically has the primary lien. Other liens, such as those from contractors or tax authorities, may be subordinate and only collect from any remaining proceeds after the mortgage is satisfied. If there are no proceeds left, junior lienholders may not receive payment.