-A lien is a legal recorded claim against a property. The claim encumbers the property as a means to collect money owed, such as a mortgage, property taxes, or an unpaid debt owed to a contractor who performed work on the property. There are other reasons liens are recorded against a property.

-Equitable lien. When a property is held as collateral and the parties agree in a document, that the property is used to secure the debt.

-General liens. These liens all real estate and personal property. Court ordered judgments, probate actions, and IRS taxes fall under this category.

-Judgment lien. This is the result of an action by a party or government agency through a court of law to collect payment on a claim.

-Involuntary lien. State statues create real estate property taxes. These taxes are a claim against the property and the property owner assumes the statue when purchasing a home. Unpaid taxes can result in a specific involuntary lien.

-Specific liens. Special assessments and mechanics liens fall into this category. Unpaid contractors from home repair and remodeling projects can file a specific lien. Homeowner associations and local governing bodies can issue special assessments for repairs and improvements. Failure to pay these special assessments can result in lien being placed against a property.

-Voluntary lien. When you have a mortgage and voluntarily agree that the mortgage lien is security for the lender in case you default on a mortgage loan.

Mark Nash

Mark Nash is an author of four books, including his recently released 1001 Tips for Buying and Selling a Home. Mark has been a commentator for CBS The Early Show, Bloomberg TV, interviewed by national newspapers and his articles have been widely syndicated in print and electronic media.