A lien is a security interest. The most common type of lien is a mortgage. For instance if you buy a home you will most likely take out a mortgage from a lender. That mortgage is a lien against the real estate. In other words the bank holds the lien. The person who holds the lien or in whose favor it exists has certain rights. In other words if you do not pay back the debt that you owe the bank can take the property. This is all covered by the agreement that you entered into. Under the terms of a mortgage if you do not make the mortgage payments then the company may foreclose on your property. Foreclosing means they may sell the home at an auction. The goal is to recover the amount of money that they loaned you. In addition they can claim interest plus expenses.
Types of Liens
Other types of liens may be seen in personal injury claims. Health insurance companies will assert a lien against any recovery for the medical bills that they have paid on your behalf. In addition there are many other types of liens that exist.
A mechanic’s lien is one asserted by a workman or supplier who has done work or supplied goods for your real estate. That party may file a mechanics lien. This goes against your property. If you try to sell you must deal with the lien. A garage keeper’s lien is a lien against your vehicle for the value of work performed on the vehicle.
Learn More About Liens
See Brien Roche’s book Law 101 published by Sphinx Publishing for more information on this subject.
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Legal answers provided by Brien Roche, a personal injury attorney with over 45 years of trial experience. Also Contact Us today to discuss your personal injury matter.
In addition for more info about liens see the pages on Wikipedia.
