Paul Porvaznik – Business Litigator
Case Notes and Summaries of Recent Cases (State and Federal Courts – Illinois Focus)
The enhancement doctrine comes into play when liened property goes to foreclosure sale and the sale proceeds are insufficient to pay off both the lender and competing lien claimants. The lender, who often records its mortgage before the contractor’s lien attaches, will argue that its mortgage interest takes priority over the contractor’s lien and any property sale proceeds …
Continue reading “Illinois Contractor’s Lien Issues: The Enhancement Rule”
The Statute: The Illinois Mechanics’ Lien Act, 770 ILCS 60/1 et seq. Purpose: to provide a remedy to a contractor who provides valuable improvements to real estate by allowing him to lien the property (place a hold on the property to secure payment). Once the lien is in place (or perfected), the lien clouds the property’s title and …