A lien is considered a legal right to claim or seize any property from a borrower who has failed to make full repayments to a creditor. In a legal standing agreement between a borrower and creditor, the creditor has the right to withhold the property until the loan has been repaid, or can sell off the property to cover outstanding amounts owed on the loan.
An agreement is only considered a lien once it has been filed with the necessary authorities, and the creditor has legal authority over the borrower’s property.
If a property owner has failed to make the necessary tax payments, the property may be seized and sold to ensure the owed tax is repaid. These liens are usually issued either by local government authorities or the court.
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