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

A lien and a security interest are two important terms related to real estate law in Washington. A lien is a type of claim that a creditor has on a property to make sure that a debt is paid. When a homeowner or business owner borrows money, the lender may place a lien on the property as a form of security. The homeowner or business owner then must pay back the loan in order to remove the lien. On the other hand, a security interest is when a creditor has an interest in the property that is used as collateral on a loan. This interest grants the creditor the right to take possession of the property if the borrower defaults on their loan payments. The creditor can then use the property as payment for the outstanding debt. In summary, the main difference between a lien and a security interest is that a lien is used to secure payment of a debt, while a security interest is used to secure collateral of a loan. In both cases, the creditor has the right to take possession of the property if the borrower does not meet their obligations.

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

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