A Mechanic’s lien is a lien that may be filed against the title to your property by a contractor, subcontractor or material supplier who has not received full payment for work or material provided to the property.

If the Lender is notified of the filing of a mechanics lien on your house, the Lender will not make any further disbursements on your loan until the lien is removed.  If you choose to challenge the lien’s validity, you must deposit one to two times the amount of the lien with the lender or title company before any further disbursements may be made.  These funds must be in addition to the funds held by the lender for completion of the property.  In some states, lien waivers are required for disbursements.