 Sam
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Joined: 21 May 2005
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 Posted: Wed Mar 31, 2004 10:15 pm Post subject: Lien |
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Lien is a legal claim or attachment against a piece of property, for the payment of a debt or an obligation. A lien does not convey ownership of property but gives the lien holder a right to have his or her debt satisfied out of the proceeds of the property if the debt is not paid otherwise.
The lien can be voluntary, such as a mortgage, or involuntary, such as a judgment. Valid liens are filed with county recorder's offices.
For example, John took a mortgage from Carole by securing his house as collateral. Due to some reason, he was not able to repay the mortgage, so she imposed a claim against the house. After waiting for a year, she sold the house to satisfy her debts from the proceeds of the sale. This claim against the house is known as 'lien'. |
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