What is a lien?

A lien in Indiana is a legal claim held against a property by a creditor (person or business) who has provided goods or services to the owner of the property. The creditor may secure a lien against the property as security in case of default or payment failure by the owner. When the creditor takes legal action to enforce the lien, it is known as a “Foreclosure.” The most common type of lien is a mortgage lien, which secures the amount of a loan to a homeowner or business. If the loan is not paid, the mortgage lien gives the lender the right to seize the property and sell it to pay off the debt. Other examples of lien types include mechanic’s lien, storage lien, and tax lien. In Indiana, creditors generally have the right to file a lien against the property of the debtor in order to secure a debt. Indiana Creditors Rights Law requires the creditor to provide notice to the debtor of the lien before any foreclosure can take place. The creditor must also provide the debtor with a copy of the lien. It is important that the debtor check with the court to make sure the lien is valid and in order. If the debt is not paid by the debtor, the creditor may seek to foreclose on the property, forcing the sale of the property in order to pay off the debt. This can have serious financial consequences, so it is important for the debtor to understand their rights and obligations under Indiana Creditors Rights Law.

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What is a lien?

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