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Commonly Asked Questions about US Legal Lien Documents

The mortgage, or deed of trust as its called in some states, is the legal instrument that creates a lien on your property. This gives the lender the right to foreclose on your property should you not satisfy the terms of the loan agreement. It creates a security interest in the property on behalf of the lender.
Six common types of liens are: Mortgage Lien. The most common type of lien is a mortgage. Tax Lien. Tax liens are special liens that are taken against a piece of property when the owner fails to pay their real estate taxes. Mechanics Lien. IRS Tax Lien. Judgment Lien. Child Support Lien.
A lien is a security interest or legal right acquired in ones property by a creditor, or lienholder. A lien usually prevents sale of the property until the underlying obligation to the creditor is satisfied.
Lien rights are available in all 50 states and generally apply to anyone who has provided labor or materials to improve a property. This can include contractors, subcontractors, material suppliers, equipment rental companies, and laborers. However, lien laws differ by state, so there are exceptions.
Any Original Contractor, Subcontractor, Laborer, Material Supplier, Architect, Engineer, Landscaper or Surveyor, who has provided labor, material, equipment, plans, plats, or surveys to a Property for the construction or repair of a house, building, or a structure, may file a Lien against the Property.
For example, if someone takes out a loan to buy a car, the car dealer would be paid using the borrowed funds from the bank. In turn, the bank would be granted a lien on the vehicle. If the borrower does not repay the loan, the bank has the right to execute the lien, seize the vehicle, and sell it to repay the loan.
A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property.
A bank holding a mortgage on someones home would be an example of a general lien. In the event that the borrower defaults on their loan payments, the bank can take possession of the entire property. There is a general lien on the borrowers property in this scenario.
A lien is a way for a lender to secure their loans. In simpler terms, if you buy something with a loan -- for example, your property -- the purchase can have a special legal filing added to its records that says that if you dont pay the loan, the company holding the lien can sell your property to cover the debt.
Contractors, subcontractors, laborers, and material suppliers can file what is called a mechanics lien on a homeowners property if they dont get paid. Property owners need to be aware of the process so they can avoid financial and legal pitfalls.