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Mechanics Lien vs Bank Lien

A mechanic’s lien is a privilege authorized by state law which permits contractors, suppliers and certain qualifying construction professionals who have provided labor or materials to improve a real property to publicly record the value of the unpaid improvements against the property owner’s title.

A bank lien permits a lender to foreclose on the property which was the subject of the loan (such as a bank repossessing a car after the borrower fails to make payments for the loan).

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