Lien
A lien is a legal right or interest that a lender or creditor has in someone else's property, typically used as security for a debt. This means if the borrower fails to repay the debt, the lender can take possession of the property. Common types of liens include mortgage liens on real estate and mechanic’s liens for unpaid repairs. Liens protect creditors by ensuring that they have a claim to certain assets until their debts are settled. Once the debt is paid, the lien is removed, restoring full ownership to the property owner.
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A lien is a legal claim or right against a property, typically used as security for a debt or obligation. If the property owner fails to pay the debt, the lien holder may have the right to take possession of the property or sell it to recover the owed amount. Common examples include mortgages, where a bank has a lien on a house until the loan is repaid, and tax liens, where the government claims a stake in property due to unpaid taxes. Essentially, a lien ensures creditors have a way to secure payment.