Lien Sale

Dictionary Says

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.

Investopedia Says

Investopedia explains '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.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center