What is the difference between a lien and a mortgage?

A lien and a mortgage are both legal documents that are used to secure a loan. However, there are some key differences between the two. A lien is a legal claim, or right to payment, taken from a property for the non-payment of debt or services. A lien can be placed on real estate, personal property, or other items of value. A lien gives the creditor the right to keep the property, or take the money from the sale of the property, until the debt is paid. In Virginia, there are several different types of liens, such as construction liens, tax liens, mechanic’s liens, and judgment liens. A mortgage is also a legal claim, taken out to secure a loan used to purchase real estate. It is a written agreement between a borrower and a lender, in which the borrower agrees to pay back the loan in a specified amount of time. The lender has the right to repossess the property if the borrower fails to make the payments according to the mortgage agreement. In Virginia, mortgages must be recorded in order to be considered legal. So, in summary, a lien is a legal claim taken from a property for the non-payment of a debt or services, and a mortgage is a legal agreement between a borrower and a lender, used to purchase real estate. The lender can repossess the property if the borrower does not make the payments according to the mortgage agreement.

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