Lien Sale

DEFINITION of 'Lien Sale'

The sale of the claim or "hold" placed on an asset to satisfy an unpaid debt. Typically, lien sales are conducted as public auctions and the lien is on real estate, automobiles and other personal property. Depending on a particular state's laws, contractors, subcontractors and suppliers may put a lien on a piece of property they have worked on pending payment for services rendered.

BREAKING DOWN 'Lien Sale'

Buying delinquent tax-liens at a sale is becoming an increasingly popular form of investing, and is similar to purchasing a long-term Certificate of Deposit (CD). However unlike a CD, tax-liens cannot be sold back to the taxing authority and must be held until they are repaid. Redemption of the purchased lien is typically at a given rate of return within a specified time frame.

RELATED TERMS
  1. Tax Lien Certificate

    A certificate of claim against property that has a lien placed ...
  2. Voluntary Lien

    A claim that one person has over the property of another as security ...
  3. Possessory Lien

    Property that is in the hands of, or is possessed by, the individual ...
  4. Federal Tax Lien

    A federally authorized lien against any and all assets of a taxpayer ...
  5. Prior Lien

    A lien that is recorded prior to any other claims. Prior liens ...
  6. Tax Lien Foreclosure

    The sale of a property resulting from the property owner's failure ...
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RELATED FAQS
  1. Can credit card creditors put a lien in house property?

  2. What is the difference between a lien and an encumbrance?

    Understand the legal terms ''lien'' and ''encumbrance,'' and learn the significant distinction between these two essential ... Read Answer >>
  3. What is the difference between a possessory and a non-possessory lien?

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