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A lien gives a lender or other creditor the legal right to seize and sell your property (a house or car, for example) if you don't meet your financial obligations on a loan or other contract. A lien comes about when a property owner owes a debt, and the use of their property becomes restricted in some way until the debt is paid. In the united states, the term lien generally refers to a wide range of encumbrances and would include other forms of mortgage or charge

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In the us, a lien characteristically refers to nonpossessory security interests (see generally Here's what you need to know about various types of liens, how they come into being, their effect on property rights, and how they come to an end A lien helps safeguard a lender's financial interest in your loan, but it can also be used as a remedy for creditors to collect unsatisfied debts

Read on to learn how liens work and the differences between the various types of liens.

The presence of a lien restricts a property owner’s ability to sell, refinance, or transfer the property without first resolving the debt For example, a property with a lien cannot typically be sold with a clear title, as potential buyers or lenders will require the lien to be removed. The meaning of lien is a charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law How to use lien in a sentence.

A lien is a legal claim made by a lender or creditor against an asset — such as a home or vehicle — when a borrower owes money. A lien is a security interest or legal right acquired in one's property by a creditor, or lienholder A lien usually prevents sale of the property until the underlying obligation to the creditor is satisfied. A lien gives a lender or creditor the ability to claim a property to pay off a debt

Learn how they work and about other types of property debt.

A lien is a legal claim that a creditor places on a debtor’s property to secure payment of a debt, granting the creditor rights over a portion of that property’s value