What is the difference between a lien and a mortgage?

In Arkansas, a lien and a mortgage are both legal means of securing a loan but they differ in a few ways. A lien is an interest in property that is granted to a creditor as security for a debt. This means that if you do not pay what you owe, the creditor can take control of your property. It is a temporary form of security and does not involve ownership of the property. On the other hand, a mortgage is a form of loan that requires a borrower to pledge their property as collateral. This means that the lender has the right to take ownership of the property if the borrower fails to make payments. With a mortgage, the borrower maintains ownership of the property until the loan is paid off. In essence, a lien is a way of taking a stake in a borrower’s property while a mortgage is a way of taking possession. Liens and mortgages are both important parts of real estate law in Arkansas and are both used as ways of ensuring that loans are paid back.

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