A mechanics lien -- also called a construction lien in Florida -- is one of the most disruptive title issues a homeowner can face. When a contractor or supplier who worked on your property does not get paid, Florida law gives them the right to record a lien against your home under Chapter 713, Florida Statutes. That lien can trigger a mortgage default, prevent you from selling, and complicate an active Florida foreclosure.
This guide explains how mechanics liens interact with Florida mortgage foreclosure, how priority is determined, and what your options are whether you are the homeowner, in foreclosure, or trying to sell.
Who Can File a Mechanics Lien in Florida?
Florida's Construction Lien Law (Chapter 713, Florida Statutes) allows a broad class of parties to file a mechanics lien against real property:
- General contractors (must have a direct contract with the owner)
- Subcontractors (must serve a Notice to Owner before recording a lien)
- Material suppliers (must serve a Notice to Owner)
- Laborers (may lien without a Notice to Owner)
- Architects, engineers, and surveyors whose work improved the property
The lien must be recorded within 90 days of the final date that work or materials were furnished to the property. A lien recorded after that deadline is invalid.
How Lien Priority Works in Florida: Mortgage vs. Mechanics Lien
The most critical question in any mechanics lien dispute is priority: which claim was first? Florida follows the "first in time, first in right" principle.
| Scenario | Priority Result | Effect on Mechanics Lien in Foreclosure |
|---|---|---|
| Mortgage recorded before construction commenced | Mortgage is superior | Mechanics lien wiped out in mortgage foreclosure |
| Construction commenced before mortgage recorded | Mechanics lien may be superior | Mechanics lien survives; new owner takes subject to it |
| Mechanics lien filed after mortgage but before foreclosure sale | Mortgage is superior (typical refinance scenario) | Mechanics lien wiped out in mortgage foreclosure |
In Florida, the date construction "commenced" is the date visible construction activity began on the property -- not the date the lien was recorded. This distinction is critical for determining priority and often requires a title search combined with construction records to establish.
When a Mechanics Lien Can Trigger a Mortgage Default
Even when a mechanics lien has no priority over your mortgage, it can still cause serious problems. Most mortgage agreements include a covenant requiring the homeowner to:
- Keep the property title free of all liens and encumbrances
- Promptly discharge any lien recorded against the property
- Notify the lender of any lien filed against the property
A mechanics lien that you ignore can lead your lender to declare a mortgage default -- even if you are current on your monthly payments. The lender may then accelerate the loan (demand full repayment immediately) and begin Florida foreclosure proceedings. This is a serious risk that catches many homeowners off guard.
How to Resolve a Mechanics Lien Before It Damages Your Mortgage
Pay the Contractor
The simplest resolution is paying what you owe. Once paid, the contractor must record a Satisfaction of Lien within 60 days. If they fail to release the lien after payment, they are liable for attorneys' fees and damages.
Negotiate a Settlement
If you dispute the amount owed or the quality of work, you can negotiate a reduced settlement with the contractor. Get any settlement in writing and ensure the contractor records a Satisfaction of Lien upon payment of the agreed amount.
Bond Off the Lien (F.S. 713.24)
Under Florida Statute 713.24, you can transfer the lien from your property to a cash deposit or surety bond by depositing 150% of the claimed lien amount with the county clerk. Once transferred, your property title is cleared of the lien and you can sell or refinance. The contractor must then pursue their claim against the bond rather than your property.
Contest the Lien
Under Florida Statute 713.22, you can serve the lienor with a Notice to Show Cause, requiring them to either transfer the lien to bond or file a lawsuit to foreclose within 20 days. If they fail to act, you can petition the court to cancel the lien. Common grounds to contest a lien include:
- Contractor failed to serve a proper Notice to Owner
- Lien was not recorded within the 90-day deadline
- Work was not actually performed or materials not actually furnished
- The claimed amount is inflated beyond what was actually owed
Mechanics Liens and Pre-Foreclosure Sales
If you are trying to sell your Florida home before a foreclosure auction -- either as a full equity sale or a short sale -- a mechanics lien will show up in the title search and must be resolved before closing. The title company will require a full Satisfaction of Lien before issuing title insurance to the buyer.
Mechanics liens in short sale situations are particularly tricky. The lender approving the short sale must agree to pay the lien from proceeds, or the lien must be settled separately. Use the equity estimator to understand how much proceeds a sale would generate and whether there is enough margin to pay both the mortgage and the mechanics lien.
What Happens to a Mechanics Lien When a Mortgage Forecloses?
When a Florida mortgage lender forecloses, all junior liens -- liens recorded after the mortgage -- are typically extinguished and wiped out at the foreclosure sale. The foreclosing lender names all junior lienholders (including mechanics lienholders) as defendants in the foreclosure lawsuit. If the junior lienholder does not appear and defend their interest, their claim against the property is extinguished when the foreclosure sale closes.
However, the contractor does not lose their personal claim against you. If the mechanics lien is wiped out in foreclosure, the contractor can still sue you personally for the amount owed. Understanding this distinction matters when evaluating whether deficiency exposure from the mortgage and outstanding contractor claims together create unsustainable post-foreclosure debt.
Barrett Henry on Mechanics Liens in Florida Distressed Sales
Barrett Henry is a Broker Associate at REMAX Collective with 23+ years of real estate experience helping Florida homeowners navigate complex title situations. Mechanics liens are one of the most common complications that arise in pre-foreclosure sales and short sales -- particularly on properties where renovation work was started but not completed.
Resolving a mechanics lien before listing a property for sale is almost always preferable to leaving it for the buyer's title search to discover. Bonding off the lien under F.S. 713.24 is often the fastest path when the contractor dispute cannot be quickly resolved. See our guide on junior liens and Florida foreclosure for the broader lien priority framework, and use the foreclosure checklist to track all title issues that need resolution before your sale closes.
Dealing with a mechanics lien during Florida foreclosure? Contact us today for a free consultation -- no cost, no obligation. Barrett Henry helps homeowners in all 67 Florida counties.
