What is a lien in regards to a loan?

Answer 1

An IRS tax lien means the IRS is placing a lien against your hours or other personal property. This is usually due to you owing the IRS an amount of money. If you cannot pay it within a certain amount of time, they could put a lien on your property, seize it, and sell it in order to make the money they are owed.

Answer 2

A lien is a right or interest a creditor has in another's property. The lien lasts until the debt is paid or until any statute of limitations for the particular type of lien has passed. If a lien is to affect real property it must be filed in the land records.

There are many different types of voluntary and involuntary liens. Mortgages and car loans are examples of voluntary liens. Examples of involuntary liens include income tax liens, property tax liens, liens for non-payment of municipal services, mechanic's liens, child support liens and judgment liens.

See discussion page.

Answer 3

A lien prevents the encumbered property from being sold, refinanced or conveyed in any manner.

The above answer isn't correct. Property can be sold, refinanced and conveyed subject to a lien. Often the seller will pay funds into escrow to cover the amount of the lien, but even that isn't necessary for a valid conveyance. The lien stays with the property until it is released. A sale, mortgage or conveyance doesn't wipe it out.

What a lien does is provide security for an obligation, a debt. The property against which the lien is filed provides a kind of collateral for the debt. The holder of the debt, the creditor, can follow certain legal procedures to foreclose on the lien. Ultimately, the creditor can force a sale of the property and have the proceeds applied to pay off the debt.

Answer 4

A lien is what is used as a guratee to insure.

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Answer 5

A lien is a legal document that is filed on unique assets of the business enterprise as a form of collateral. Once the loan is repaid, the lien is released.

Answer 6

This is a contract to buy or lease a house. It says someone else other than you holds the title rights or mortgage rights to the house or property.

Answer 7

A land lien (or property lien) is used to inform the public you owe money on the house. It is often printed in the local newspaper.

Answer 8

A particular lien exists only as security for the particular debt incurred.