A lien is a legal claim against property or assets that can be used as collateral to ensure the repayment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienee, and the person who has the benefit of the lien is referred to as the lienor or lien holder. Liens can be voluntary or involuntary, and they can be placed on real estate, equipment, vehicles, jewelry, furniture, and any other valuable personal property. There are different types of liens, including:

• Mortgage Lien: A type of voluntary lien that gives a lender the right to seize and sell real estate property if someone defaults on an agreement.

• Tax Lien: An involuntary lien placed on property if someone fails to pay state or federal taxes. Tax liens are given priority over all other liens, which means they must be paid first.

• Judgment Lien: A lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.

• Property Lien: A type of voluntary lien that includes mortgage liens. When someone takes out a loan to buy a house, they agree to offer up the home as collateral. In the event that they cant pay back the loan, the lender may sell their home to recover their losses.

Liens can make it harder to borrow money, and they give the creditor the right to sell the borrowers property if they fail to repay the debt they owe.