A lien is a legal claim or interest that a creditor has in the property of a debtor, which is a type of security interest that gives the creditor the right to take possession of or sell the property if the debtor fails to fulfill their financial obligation
Note: There most common types of liens include:
Mortgage Lien: A lien placed on real property by a lender to secure a loan.
Mechanic’s Lien: A lien placed on the property by a contractor or subcontractor.
Tax Lien: A lien placed on a taxpayer’s property by a government entity for unpaid taxes.
Judgment Lien: A lien placed on a debtor’s property resulting from a judgment against them.
