Lien
A legal claim against property that secures a debt and must be paid off before clear title can transfer.
When you take out a mortgage, the lender records a lien against your property at the county. That lien gives the lender the right to force a sale if you don't pay, and it stays on the title until the loan is paid off and the lien is formally released.
Liens come in priority order. The first mortgage usually holds first lien position. Second mortgages and HELOCs sit in subordinate position behind it. Tax liens generally jump in front of all of them, unpaid property taxes can become a senior claim ahead of even the first mortgage.
Title insurance exists in part to protect against undiscovered liens. A title search examines public records to surface every recorded claim against a property, and the title policy stands behind the search if something later emerges that should have been caught.
Related terms
Other terms you'll see alongside Lien
A policy that protects buyers and lenders against claims arising from defects in the property's chain of ownership.
The act of placing or moving a lien into a lower priority position relative to other liens on the same property.
The asset pledged to secure a loan, which the lender can take and sell if the borrower defaults.
The legal process by which a lender takes possession of and sells a property after a borrower defaults on the mortgage.
Want to apply Lien to your real numbers?
Get a personalized estimate in under a minute, or talk to a licensed HCMG loan officer about how this affects your specific situation.