Aug 24, 2025 · Liens on your property can make it difficult to sell or refinance an asset like a home or car. Creditors use liens as a legal tool to force repayment of debts. When you take out a secured loan,...

Aug 23, 2025 · Learn what a lien is, how it works, and explore types like bank and tax liens. Understand their effects on property and the legal rights of creditors and debtors.

General liens: A general lien allows a creditor to seize any and all of your assets to pay a specific debt. For example, if you own a primary residence and a vacation home, the Internal Revenue Service …

Oct 1, 2025 · Example: If you don't pay a mortgage lien, the lender could foreclose on your property and sell it to recoup their loss. And if you don't repay an auto loan, your car can be repossessed.

Dec 10, 2025 · The most common lien encountered by US consumers is the voluntary mortgage lien, which secures the repayment of a real estate loan. A mortgage or deed of trust is the legal document …

Guide to Lien and its meaning. We explain the topic in detail with its example, and a comparison with collateral, mortgage & encumbrance.

The most notable example is a tax lien, which is imposed by law against the property of a taxpayer. If a taxpayer fails to pay the taxes owed to the government, the tax agency can seize his or her real or …

Dec 8, 2025 · For example, if you have an auto loan, then the bank or financial institution that issued your loan has a lien on your car – meaning they can legally force the sale of your vehicle in order to …

Apr 5, 2023 · For a lien on real property, this means filing a document, called a release of mortgage or release of lien, in the public land records. For a motor vehicle lien, it means removing the lien from …

Jun 26, 2020 · For example, a mortgage bank has a lien on the piece of real estate they financed the purchase of. In a specific lien, the asset was specifically offered as collateral in exchange for the loan …