What is a lien?

A lien is a legal claim used to secure payment of a debt. In California, a lien is a legal right to a piece of property that guarantees payment of a debt or obligation. A lien is granted by a creditor, such as a bank or other lender, in order to secure repayment of a loan. When a creditor grants a lien, the debtor’s right to the property is subject to the creditor’s legal claim. This means that if the debtor does not make the required payments, the creditor can take possession of the property in order to satisfy the debt. A lien is typically an in rem right—it is enforced against the property itself instead of against the debtor. In some cases, a lien can also be used to secure any damages caused by the debtor, such as if the debtor does not fulfill a contract or violates another party’s rights. A lien might also be used to secure payment for services performed, such as if a contractor completes a job for a homeowner but is not paid. In California, liens are created and enforced in accordance with the state’s Debtor and Creditor Law. The laws in this area are designed to protect both debtors and creditors, as well as ensure that debts are repaid in a timely manner.

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