Mortgage Lien
A mortgage lien is a legal claim placed on a property by a lender when a borrower takes out a mortgage loan to buy that property. This lien gives the lender the right to take possession of the property if the borrower fails to repay the loan as agreed. Essentially, the property serves as collateral for the loan. As long as the mortgage is unpaid, the lien remains in effect, and the borrower cannot sell or refinance the property without addressing the lien. Once the mortgage is fully paid, the lien is removed, giving the borrower full ownership.
Additional Insights
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A mortgage lien is a legal claim that a lender places on a property when money is borrowed to buy it. This lien secures the loan, meaning if the borrower fails to make payments, the lender has the right to take ownership of the property through foreclosure. Essentially, the property acts as collateral for the loan. While the borrower maintains ownership and can live in the home, the lender holds a financial interest until the mortgage is fully paid off. Once fully paid, the lien is removed, confirming the borrower’s complete ownership.