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 place until the loan is paid in full or satisfied.  A lien on property reduces the risk to the creditor that the borrower may not be able to make the required loan payments.

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

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

Other forms of this term include - liens