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Paul Porvaznik – Business Litigator

Case Notes and Summaries of Recent Cases (State and Federal Courts – Illinois Focus)

Tag Archives: secured creditor

Mechanics Lien Trumps Prior Mortgage in ‘Lien Strip’ Bankruptcy Dispute Involving Residential Property

Priority disputes happen a lot in mechanics’ lien litigation.  Typically, a mortgage lender claims that its first-filed mortgage trumps a later-filed mechanics lien.  The “trumps” part is activated if and when the property is sold and there aren’t enough proceeds to pay both the lender and contractor.  If the lender’s mortgage has priority, it gets first dibs on the sale proceeds, leaving the …

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Posted byPaulPApril 9, 2014October 4, 2016Posted inMechanics Lien/Construction LawTags: 770 ILCS 60/16, bankruptcy, Chapter 13, Cypress Creek, enhancement, lien stripping, LLC, M3R, mechanics lien, Molzahn, mortgage, Porvaznik, priority, Reed & Rouse, Rocco, section 16, secured creditor, summary judgment, unsecured creditor
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