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Lien

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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 ...
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