Property liens by utility

[Scott VandenBerg]

Has anyone ever purchased a lien put on a property by a utility? (Electric, lets say) What document is used to record the sale of the lien? Anything else to consider?

[John Rooster]

In Colorado, and every other State I am familiar with, the only utility that can lien a property is the water/sewer companies/districts, and their liens have super priority status, so they aren't real motivated to sell, and I have never seen a water/sewer lien foreclosed on (except via the tax lien sale process described below). The Electric, gas, companies can only lien the property by getting a personal judgment against the debtor and then recording it. With the possible exception of some small rural electric or propane company, I have never seen an electric/gas company pursue a personal judgment against anyone (phone and cable companies do, but rarely, and they are just quasi utilites). If it works differently in MI, please enlighten me, I would love to hear about it!

And as far as what document the water/sewer company uses to record their lien... they don't have to record it. There is a process whereby they can, if it is badly behind, apply to have it added to the property tax amount and sold at the tax lien cert sale. Very rarely happens.