Home Lien

AAA

DEFINITION of 'Home Lien'

A legal claim placed on a home that makes selling the home, obtaining a mortgage or refinancing the property more difficult until outstanding financial obligations are met. A lien placed on a home is part of the public record in the county where the home is located, and can be filed by anyone who has a legal interest in the property. Common forms of liens include tax liens, mechanic's liens and judgment liens.

INVESTOPEDIA EXPLAINS 'Home Lien'

Home buyers have to pay special attention to the property they are looking to purchase, since existing liens can hold up the whole process and make it difficult to get refinancing. It is important to check the public record for a piece of property in order to see if it is encumbered. Even if the financial obligation causing the home lien has been taken care of, the public record may sometimes be out of date. This may result in a bank or lending institution holding off on a loan until they are certain that everything has been taken care of.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Deed Of Reconveyance

    A document issued by a mortgage holder indicating that the borrower ...
  3. Defeasance Clause

    A mortgage provision indicating that the borrower will be given ...
  4. Property Lien

    A property lien is a legal claim on a tract of real estate granting ...
  5. Mechanic's Lien

    A guarantee of payment to builders, contracters and construction ...
  6. Lien

    The legal right of a creditor to sell the collateral property ...
RELATED FAQS
  1. What real estate documents need to be recorded?

    Recording – the act of putting a document into official county records – is an important process that provides a traceable ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Financing Basics For First-Time Homebuyers

    If you're looking to get your first mortgage, there are many financing options available.
  2. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  3. Home & Auto

    Attention Home Buyers! Why You Need A Lawyer

    Property transactions are complex and subject to specific state/local rules. A professional can simplify the process.
  4. Home & Auto

    The Benefits Of Mortgage Repayment

    Buying a home may be the biggest debt you'll ever incur. Learn why you should retire it sooner, rather than later.
  5. Home & Auto

    10 Worst First-Time Homebuyer Mistakes

    These errors could wind up costing you more than the coveted key to your first home.
  6. Home & Auto

    Finding A Good Real Estate Agent

    Don't go it alone in the real estate market. We'll show you how to find the help you need.
  7. Credit & Loans

    Getting A Mortgage After Bankruptcy Or Foreclosure

    Millions of Americans had homes foreclosed and millions more went into bankruptcy. Here are the necessary qualifying steps to buying a home again.
  8. Taxes

    Will Itemized Deductions Get You A Bigger Refund?

    April and taxes are due soon. If you need to file your return, you might have to decide if itemizing your deductions this year will net you a better deal.
  9. Home & Auto

    Save $30,000 For A Home Down Payment In 5 Months

    Before tackling mortgage rates, home maintenance costs and utilities, every home buyer must first gather the funds for a mortgage loan down payment.
  10. Credit & Loans

    Getting A Mortgage When Building Your Own Home

    It's much harder to get a loan when you're building a home, not moving into one. Here's where to look and what to expect.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center