What is a lien?

A lien is a legal term used in property law that gives a creditor the right to keep possession of your property until you pay off a debt. In California, a lien can be placed on real estate, personal property such as cars and boats, and even wages. A lien is created when a lender gives a borrower a loan and the borrower agrees to use his or her property as collateral for the loan. In other words, the lender has a legal right to take the borrower’s property if the borrower fails to pay back the loan. For example, if you take out a loan to buy a house and use the house as collateral, the lender will have a lien on the house. If you don’t pay the loan back, the lender can foreclose on the house and sell it to pay off the loan. In addition, the lender may also place a lien on the buyers’ other properties, such as cars and boats, or take the money from their wages if necessary. A lien is a powerful tool for creditors and lenders, as it gives them the right to take a borrower’s property as a means of payment.

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