How a $3 Million Home Almost Got Foreclosed Over $1,700

Unexpected Foreclosure Risk on Luxury Homes

What's up, Squares? Did you know a $3 million home can be foreclosed on because some random dude didn't pay his backhoe rental fee? Yeah, that's right. We recently had a client trying to refinance their luxury home after a major renovation.

How a $1,700 Mechanic's Lien Can Threaten Millions

The homeowners paid their contractor, and the contractor paid the excavator. But the excavator didn't pay the equipment rental company. So the rental company slapped a mechanic's lien of just $1,700 on the property title. $1,700 on a $3 million home. And yes - if this lien hadn't been discovered during the title search, the company could have legally foreclosed on the house for that tiny amount.

Why Title Searches Are Critical

This is exactly why title searches are so critical. They protect homeowners from unexpected liens, legal surprises, and potential foreclosure - even after paying all your contractors.

Protecting Your Home Before Renovations

Side note: what kind of excavation company doesn't own a backhoe? Before starting your renovation, ask your mortgage broker how to protect yourself from mechanic's liens and safeguard your investment. Even a small oversight can have massive consequences.

Later, nerds.