What is the difference between a lien and a mortgage?

A lien and a mortgage are both important concepts when discussing residential real estate law in Alaska. A lien is a legal claim against a property that gives the lienholder the right to take legal action if the owner does not meet certain obligations, such as paying their taxes or debts. A lien is typically held by a creditor, such as a bank or government agency, who is owed money by the homeowner. A mortgage is a loan used to purchase a home. When a homeowner takes out a mortgage, they pledge the property as security for the loan. This means that the lender has a legal claim to the property if the mortgage is not paid back. The lender can then foreclose on the property and take possession of it. The main difference between a lien and a mortgage is that a lien is imposed on a property as a result of unpaid debts, while a mortgage is a loan taken out by the homeowner to purchase the property. Both have an effect on the homeowner’s legal rights to the property, but the type of action taken will depend on the specifics of the situation.

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