Lien

A Lien is the legal right given to a lender to take, or sell, property of a debtor as security or collateral against payment of the debt. Once placed on a property, a lien will remain in effect until the loan is paid in full or satisfied.  A lien on property reduces the creditor's risk that a borrower may not be able to make their required loan payments.

As is the case with a deed, a lien can take on several specialized forms:

• Assessment Lien - municipalities making improvements to property may seek an assessment lien to ensure future tax payments will be used to pay for the improvements.
• First Lien - takes precedence over all other liens or claims to a property.
• Junior Lien - subordinate in priority relative to other liens.
• Tax Lien - a legal lien on a property for taxes due, sometimes sold at county auction.