🏠 What Is a Mortgage Lien in Real Estate?

A mortgage lien is a legal claim that a lender holds against your property until the loan is fully paid off. It gives the lender the right to take possession of the home through foreclosure if you default on payments.

🔍 How a Mortgage Lien Works

When you take out a mortgage, the lender files a lien with the county recorder’s office to secure their financial interest in the property. This lien ensures the lender is paid before any other claims if the property is sold or foreclosed upon.

The lien stays attached to the property—not the borrower—until the loan is paid in full. Once satisfied, the lender issues a lien release or satisfaction of mortgage to clear the title.

🏦 Why Mortgage Liens Matter for Homeowners

  • Title ownership: Until your mortgage is paid off, the lender technically has a claim to your property.
  • Refinancing: The lien must be released before a new loan can be recorded.
  • Selling your home: The lien must be cleared at closing to transfer a clean title to the buyer.
  • Public record: Liens are visible in property title searches, impacting your ability to sell or refinance.

📄 Types of Mortgage Liens

There are two main types of liens homeowners might encounter:

  • Voluntary liens: Created when a borrower agrees to use the property as collateral for a loan, such as a mortgage or home equity loan.
  • Involuntary liens: Filed by a third party, like a tax authority or contractor, without the homeowner’s consent, often due to unpaid debts.

⚖️ How to Remove a Mortgage Lien

Once your loan balance is paid off, your lender must record a lien release with the local recorder’s office. This officially clears the lien from your title. If you refinance, the old lien is replaced with a new one for the new loan.

If a lien remains after payoff, contact your lender or county recorder to confirm the release was filed correctly.

📚 Related Real Estate Topics

Understanding mortgage liens ties closely to several other key real estate concepts:

❓ Frequently Asked Questions

What happens if a mortgage lien is not released?

If a lien is not released after payoff, it can delay the sale or refinancing of your home. You’ll need to request a lien release from your lender or title company.

Can a property have multiple liens?

Yes. A property can have more than one lien, such as a first mortgage, a home equity line of credit, or a tax lien. Priority determines which lender is paid first.

Is a mortgage lien the same as a mortgage?

Not exactly. The mortgage is the loan agreement, while the lien is the legal claim securing the loan against the property.