What exactly is a Lien and How exactly does It Work?

What exactly is a Lien and How exactly does It Work?

A lien typically stays set up until financing or debt is compensated

What exactly is a lien? It really is a declare that somebody or something like that is wearing home you have or utilize. The person or entity which have the claim—such as a lender—can repossess or foreclose regarding the home if you do not make re re re payments on an associated loan or perform other agreed-upon terms.

A typical example of a lien is a re payment agreement for a auto loan. The mortgage document includes conditions that enable the financial institution to help keep you against offering the vehicle you owe until you pay what.

The word “lien” comes from the Latin for “to bind” (like ligaments, as an example). Continue reading “What exactly is a Lien and How exactly does It Work?”