What is the difference between a lien and a security interest?

A lien and a security interest are two different types of interests that someone may have in a piece of real estate in North Carolina. A lien is an interest in a piece of real estate that is held by a creditor in order to secure a debt owed to them. This type of interest gives the creditor the right to take possession of the property if the debt is not paid. A security interest is a type of interest that is held by a lender in order to secure a loan. This type of interest entitles the lender to take possession of the real estate if the loan is not paid in full. The main difference between a lien and a security interest is the type of debt that they are used to secure. A lien is used to secure a debt that already exists, such as an unpaid tax or a judgment, while a security interest is used to secure a loan or other debt that is created when the loan is taken out. Another difference is that a lien must be filed with the county in order to be valid, while a security interest does not need to be officially filed with a county in order to be valid. Lastly, a lien will remain on the real estate until the debt is paid, while a security interest will usually terminate once the loan is paid off.

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What is the difference between a lien and a security interest?

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