Lien
A legal claim against a property that secures a debt, such as a mortgage, unpaid taxes or contractor bills. Liens generally must be paid off or released before the property can be sold with clear title.
Also called: encumbrance, lien holder, lienholder
Related terms
A loan used to buy real estate, with the property pledged as security. If the borrower stops paying, the lender can foreclose. Some states use a deed of trust instead of a mortgage document, but people call both a mortgage.
A claim a government places on a property for unpaid property taxes. If not paid, the lien can be sold to investors or lead to a tax sale; rules vary widely by state.
A claim against a property filed by a contractor or supplier who was not paid for work or materials. It must usually be paid or released before the property can sell with clear title.
A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.
Any claim, lien or error in the records that casts doubt on who owns a property. It usually must be cleared before the sale can close.
A revolving credit line secured by your home, which you can draw on and repay as needed. Rates are usually variable, and it typically sits behind the first mortgage as a second lien.