What does a "lien" typically secure?

A lien is a legal right or interest that a lender has in another's property, granted until the obligation or debt that it secures is satisfied. This means that a lien typically secures a financial obligation, such as a loan or debt. If the borrower fails to meet their financial commitments, the lender may have the right to take possession of the property or proceed with other actions to recover the owed amount.

By securing a financial obligation, liens serve as a form of protection for creditors, ensuring they have a legal claim to the property until the debt is resolved. This is a fundamental aspect of how loans and mortgages function in real estate and many financial transactions, as it provides a layer of security for the lender while allowing the borrower to obtain financing. Understanding the concept of liens is essential in various areas, including property law, finance, and real estate transactions, as they play a critical role in securing debts and obligations.