- A legal hold or claim of a creditor on property owned by another party.
claim, case, hold on property, right to property, property lien
Related Terms and Acronyms
- Abandonment — Definition,
- A disclaimer of ownership by the trustee or debtor in property deemed burdensome or inconsequential. Once property has been "abandoned" it is no longer the property of the estate and creditors can seek to recover their money.
- Abstract of Judgement — Definition,
- A court document that states how much the loser of a lawsuit owes, and which creates a lien, or a claim on property, when filed with the county recorder where the property is owned.
- Bundle of Rights — Definition,
- A set of legal rights that an owner has regarding a property.
- Claim — Definition,
- A creditor's assertion of a right to payment from a debtor or the debtor's property.
- Clear Title — Definition,
- Title not burdened by liens or legal questions.
- Cloud on Title — Definition,
- A claim on title to property that could impair the ability to transfer ownership.
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Contractual Lien — Definition,
- A legal claim against property as a result of a voluntary contract, such as a mortgage.
- Distressed Property — Definition,
- Property that is in poor condition, or whose owner is in poor financial condition.
- Encumbrance — Definition,
- Anything that affects or limits the clear and free title to a property, such as mortgages, leases, easements, or restrictions.
- First Lien — Definition,
- Primary claim by the lender for satisfaction of outstanding debt. A first mortgage creates a first lien.
- Garnishment — Definition,
- An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
- Home Equity Line of Credit (HELOC) — Acronym, Very Important,
➥ Also known as a Home Line of Credit.
- An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
- Insurable Title — Definition,
- A title that can be insured.
- Leveraged Property — Definition,
- A property financed with mortgage debt.
- Lien Holdback — Definition,
- The practice of mortgagees withholding up to 15% of mortgage monies advanced on new construction.
- Lien Waiver — Definition,
- A document in legal form signed by persons or firms which have lien rights, waiving those rights.
- Mortgage Lien — Definition, Important,
- A legal claim against a mortgaged property which must be paid when the property is sold.
- Secured Debt — Definition,
- A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
- Settlement Statement — Definition,
- A document that details who has paid how much to whom.
- Tax Lien — Definition,
- A claim, or obstacle, to the sale of property because of unpaid taxes. The property's title can't be transferred until liens are paid.
- Title Defect — Definition,
- A legal claim by others to property, or the right to make demands upon an owner.
- Unsecured Claim — Definition,
- A claim or debt where the creditor has no guarantee of repayment because collateral is not required from the borrower. Credit is granted solely on an assessment of the debtor's future ability to repay the claim or debt.