|
|
Lien
A lien is a legal term. A lien occurs when the creditor (the bank) is legally given the right to sell a mortgaged property (home, vehicle, real estate property, boat, etc.) who has failed to make their payments. Liens protect banks in case of delinquent payments.
A lien is a legal right and it refers to a legal form of security granted over an asset to secure debt. The asset that is used in lien is called collateral. When a loan is fully paid the lien is null and the lender no longer has any legal right to the property. Liens are used to make sure a delinquent borrower pays their debt and secure the lender if they don’t. A common form of lien in real estate is when the lender of a first mortgage is granted primary lien over the property if the borrower does not make payments and is in default.
When the house is sold, the lender gets their repayment before any second mortgages or loans take place. This is because the right (the lien) means they can secure their repayment first. Liens are voluntary or involuntary. Voluntary liens: lender and borrower complete the contract together, example: mortgages and other credit or loan agreements.
Involuntary liens: liens established for delinquent taxes and judgment liens for delinquent payments. Perfect Lien: the lender has the right before any other third party lenders to collateral repayment. Third party lenders will be informed of the lien. Equitable lien: a lien on equity in a real estate property. No money until the house is sold. Equitable liens occur when an occupant of a property spends money on renovations ahead of time. They become the owner of the equity by virtue of the renovations. Renovations increase property value.
Any property that carries a lien can be forced into sale at any time. If the loan is in default, the lender has the legal right to do so. If the borrower sells the property, the lien holder (the creditor) must be paid in full before the property or vehicle will be cleared for transfer.
|
Home
Adjustable Rate Mortgages
Agflation
Alliance Bank
Annuity
ANZ Bank
Associated Bank
Audit
Austerity
Bad Credit Mortgage
Bad Debt
Bank of America
Bank of Colorado
Bank of Montreal
Bank of Oklahoma
Bank of Scotland
Bank of Texas
Bank of the West
BankAtlantic
Bankruptcy
Banks In The USA
Barclays Bank
BBVA Compass
BestBank
Black Friday
BMO Bank of Montreal
BNP Paribas
Bonds
Branch Banking and Trust
British Bankers Association
Bull and Bear Markets
Cambridge Savings Bank
Canada Pension Plan
Canadian Tire Bank
Canadian Western Bank
Capital
Capital Bank
Cash Advance
Chase Bank
CIBC Canadian Imperial Bank of Commerce
Citibank
Citizens Bank
Citizens Bank of Canada
City National Bank
Co-operative Bank
Coast Capital Savings Credit Union
Comerica Bank
Commodity
Commonwealth Bank
Conexus Credit Union
CONTACT
Credit Card Advice
Credit Counseling
Credit Report
Credit Unions
Currency
Day Trading
Deficit
Defined Benefit Pension
Defined Contribution Pensions
Depreciation
Direct Deposit Advance
Downsizing
Entrepreneur
Envision Credit Union
Equity
Fedwire Routing Number
FHA Loans
Fiat Money
First Federal Bank of Florida
First Niagara Bank
First Republic Bank
First Tennessee Bank
FirstBank
Fixed Rate Mortgages
Forex Trading
Frost Bank
Glens Falls National Bank
Globalization
Glocalism
Gold
Government and Mortgages
Grants
Gross Domestic Product or GDP
Halifax
Harris Bank
HDFC Bank
Hedge Funds
Home Appraisals
Home Equity Loans
Home Equity Rates
Home Foreclosure
HSBC Canada
Hudson City Bank
Identity Theft
Inflation
ING Direct
Interest-only loan
IPO
Kennebunk Savings Bank
KeyBank
Lien
Life Insurance
Links Resources and Partners
Lloyds TSB
Market Share
MasterCard
Meridian Credit Union
MI Bank
Micro Credit
Money by Pink Floyd
Money Converter
Money Market
Money Mart
Money Scams
Mortgage Loan
Mortgage Refinancing
Mutual Fund
MutualBank
National Australia Bank
National Bank of Canada
Navy Federal Credit Union
Navy Federal Credit Union Online Banking
Navy Federal Credit Union Routing Number
Navy Federal Credit Union Web Bill Pay
Offshore banking
Old Age Security Program
One For The Money Movie 2012
OneWest Bank
Orange County Teachers Credit Union
Oxford Bank and Trust
Payday Loans
Pentagon Federal Credit Union
Peoples United Bank
Personal Finance Software
PNC Bank
Provident Bank
RBC Royal Bank
Recession
Refund Anticipation Loan
Regions Financial Corporation
REIT or Real Estate Investment Trust
Reverse Mortgages
Rich Dad, Poor Dad
Scotiabank
Second Mortgages
Servus Credit Union
Silver
Sovereign Bank
Standard Bank
Steinbach Credit Union
Stock Market
Student Financial Aid
SunTrust Bank
SunTrust Routing Number
Taxes
TCF Bank
TD Canada Trust
TD Canada Trust Routing Number
The Federal Reserve
The Gold Standard
The Wealthy Barber
Union Bank
US Public Debt
Vancity Credit Union
Venture Capital
Wealth Coaching
Wells Fargo
Wells Fargo Routing Number
Woodforest National Bank
Zions Bank
|
