what is a lien

A lien is a legal claim against an asset that is used as collateral to secure the repayment of a debt or the performance of some other obligation. It gives the creditor the right to take possession of the property if the debtor fails to meet the obligations of a loan contract. There are various types of liens, including voluntary and involuntary liens. Voluntary liens are consensual, such as a mortgage, while involuntary liens are imposed by law, such as tax liens. Liens can be placed on real property, such as a home, or personal property, such as a car. They are commonly used in the context of mortgages, car loans, and tax debts