Mechanic Lien Claim - Loretta's Title Policy Covered a Mechanic Lien Claim
Loretta loved her new home. She was especially thankful for the fact that the seller replaced
the roof so she would not have to spend money for the unexpected surprise of a leaking roof.
She had that problem with her prior home. Much to her surprise as it turned out the seller
never paid the roofing contractor. Surprise turned to frustration when the roofing contractor
insisted he had a mechanic lien (you might call it a construction lien) which he could
foreclose against Loretta's new home.
Imagine the relief when Loretta learned she could tender the problem to her title insurer
to take care of the whole problem. She had a comprehensive ALTA Residential Policy that
provided coverage for such liens. Her insurer contacted the roofing contractor and after a
few months of negotiation the lien claim was settled and resolved. In the end Loretta was
safe and secure under her new roof and she never had to fret over the contractor's mechanics