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 Even if the financial obligation causing the home lien has been taken care of, the public record may sometimes be out of date.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 >>
  2. Is the banking sector subject to any seasonal trends?

    The banking industry, including retail and investment banks, is subject to seasonal trends. Seasonality is most commonly ... Read Full Answer >>
  3. What is the difference between an Equity REIT and a Mortgage REIT?

    There are several types of real estate investments trusts (REITS) that investors can purchase, including equity REITS and ... Read Full Answer >>
  4. Can small investors buy collateralized mortgage obligations (CMOs)?

    Collateralized mortgage obligations (CMOs), which are pools of mortgage-backed securities (MBS), are available to smaller ... Read Full Answer >>
  5. What is the difference between an option-adjusted spread and a Z-spread in reference ...

    Unlike the Z-spread calculation, the option-adjusted spread takes into account how the embedded option in a bond can change ... Read Full Answer >>
  6. What are some historical examples of debt securitization?

    The first debt securities were probably sovereign debt assets that were transferred from the British government to mercantilist ... 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. Home & Auto

    What Are The Tax Advantages Of Buying A Home?

    Don't forget these deductions and credits that homeowners can use to reduce their tax bill.
  8. Credit & Loans

    How To Finance Foreign Real Estate

    If you don't pay cash, financing real estate abroad is likely to cost more than at home. Watch for local laws and be sure your rights are protected.
  9. Credit & Loans

    Save? (Or Prepay Your Mortgage Or Student Loan?)

    With low-interest rate loans, you might be better off paying just your monthly minimum and investing whatever extra funds you have.
  10. Credit & Loans

    Not a U.S. Citizen? A Home Loan is Still Possible

    Many banks and mortgage companies offer conventional and FHA home loans to non-U.S. citizens, if they can verify their work history and financial status.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center