What is a Lien?
A lien is a legal claim or a “hold” on some type of property, whether personal or real property, making it collateral against monies or services owed to another person or entity. A lien usually exists in situations like second mortgages, loans against a vehicle title, or money loaned against any other substantial item owned by a borrower. It may keep the borrower from selling the property, or at least keep him or her from transferring title to the property. Any property that carries a lien can be forced into sale by the lender, in order to collect what is owed, if the loan is in default. If the borrower decides to sell the property, the lien holder must be paid before the title will be cleared for transfer to the buyer. There are different kinds of liens, and one of the most common is a mechanic’s lien, also known as a construction lien. This type of lien is put into place when the property owner owes money for materials or labor which improved the property in some way. This can includ
A lien, which dates back to English common law, is a claim to property for the satisfaction of a debt. If you refuse to pay the debt, whoever files the lien may ask a court to raise the money by foreclosing on your property and selling it, leaving you with the difference between the selling price and the amount of the lien. (Your mortgage lender, though, is ordinarily first in line for payment.) It’s possible to lose a $200,000 house over a $5,000 lien, although someone with a $200,000 house would probably be able to figure out some other way to satisfy the lien. There are several types of liens, any of which creates a cloud on your title. For example, a mechanic’s lien or construction lien can occur if contractors or subcontractors who worked on your house (or suppliers who have delivered materials) have not been paid. They may file a lien at the local recording office against your property. If the lien is not removed, it can lead to foreclosure or inhibit your ability to sell your ho
A lien is a right given by the owner of property to the owner’s creditor that allows the creditor to hold the property as security for a debt. In Texas, a mortgage is considered a lien. In practical terms, this means the institution granting the mortgage does not own the real estate, just a right to use the real estate as security for a debt. The only way a mortgage grantor in Texas can have actual title to the property is to “foreclose” its lien on the property in court.
