An Indiana mechanic’s lien is a legal document drafted by contractors, subcontractor’s and suppliers to seek payment owed for construction work or property improvement. Filing a lien is the first step in initiating a foreclosure lawsuit, though owners will often satisfy the debt prior to lien enforcement as a property with a lien attached is difficult to obtain financing against and tough to sell. A lien will indicate that an unpaid debt exists on the property title, therefore deterring potential buyers and adversely affecting the property’s marketability.
To acquire a lien, the claimant must file a sworn statement and notice of the person’s intention to hold a lien in the county recorder’s office within ninety (90) days of their work’s completion, and within sixty (60) days for “Class 2” structures (as defined in § 22-12-1-5). Once both the statement and notice are filed, the claimant will have a one (1) year period to enforce their lien.