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Commonly Asked Questions about Property and Finances Legal Forms

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A lien is a claim or legal right to a certain assets belonging to a debtor, often those used as collateral for a loan. Liens can be invoked by the creditor if the debtor fails to meet their obligations, allowing the creditor to seize and sell the assets.
A deed of trust, also called a trust deed, is the functional equivalent of a mortgage. It does not transfer the ownership of real property, as the typical deed does. Like a mortgage, a trust deed makes a piece of real property security (collateral) for a loan.
Mortgage is the correct answer. A mortgage is a legal document that gives the lender a claim against the property if the borrower fails to repay the principal, interest, or both as agreed. It is a type of loan that is commonly used to purchase real estate, with the property serving as collateral for the loan.
A lien is a legal claim against your property to secure payment of your tax debt, while a levy actually takes the property to satisfy the tax debt. A federal tax lien comes into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay it.