Lien

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Dictionary Says

Definition of 'Lien'

When a creditor or bank has the right to sell the mortgaged or collateral property of those who fail to meet the obligations of a loan contract.
Investopedia Says

Investopedia explains 'Lien'

This is typically enforced under provincial or state laws.

Related Definitions

  • Blanket Lien

    A lien that gives the right to seize, in the event of nonpayment, nearly all types of assets and collateral owned by a debtor in order to satisfy the debt. A blanket lien gives a ...
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  • Collateral

    Properties or assets that are offered to secure a loan or other credit. Collateral becomes subject to seizure on default.
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  • Silent Automatic Lien

    A lien that does not appear in any public record. This is a method used by the IRS to collect unpaid taxes when less dramatic measures, such as sending letters to the delinquent ...
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    • Encumbrance

      A claim against a property by another party. Encumbrance usually impacts the transferability of the property and can restrict its free use until the encumberance is removed. The most ...
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    • Construction Lien

      A claim made against a property by a contractor or other professional who has supplied labor or materials for work on that property. Construction liens are designed to protect ...
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    • Clear Title

      Also known as "clean title," "just title," "good title" and "free and clear title." A clear title is a title without any kind of lien or levy from creditors or other parties and poses no ...
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    • Second Lien Debt

      Debts that are subordinate to the rights of other, more senior debts issued against the same collateral, or a portion of the same collateral. If a borrower defaults, second lien debts ...
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    • Other Real Estate Owned - OREO

      In bank accounting, this term refers to real property owned by a banking institution which is not directly related to its business. In balance sheet terms, other real estate owned (OREO) ...
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    • Secured Creditor

      Any creditor or lender that takes collateral for the extension of credit, loan or bond issuance. In the arena of personal finance, the most well-known secured creditors are mortgage ...
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    • Corporate Lien

      A claim made against a business for outstanding debt. The debt can be owed to another business, or could be in the form of tax obligations to the government. For example, the federal ...
      Read More »

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