Federal Lien

A federal lien is a legal claim placed by the government on a person's property when they fail to pay certain types of debts, such as taxes. This claim gives the government the right to collect what is owed by potentially seizing or selling the property if the debt is not settled. Federal liens are typically filed with public records, affecting the homeowner's ability to sell or refinance their property. It serves as a reminder of the obligation to pay the debt and can impact creditworthiness and financial dealings.