What is the difference between a lien and a mortgage?

A lien and a mortgage are both legal documents—but they are completely different. A lien is used to secure a debt, meaning the creditor (the person or company who lent money) wants to make sure they can get the money back if the borrower doesn’t pay. A lien is usually filed in court, and a lien will usually attach to a property owned by the borrower to ensure that the debt gets paid. A mortgage is a specific type of lien. It is a complicated legal contract between a borrower and a lender involving the use of a piece of real estate as collateral. That means the borrower gives the lender a lien on the title to the property as security and a guarantee that the loan will be paid back. In California, residential real estate law dictates that in order for a mortgage to be valid, certain conditions have to be met—such as a certain amount of money being loaned, an agreed-upon interest rate, and other terms and conditions. If these conditions are not met, then the mortgage may not be valid. In summary, a lien is a way to secure a debt, while a mortgage is a specific type of lien used to secure a loan on residential real estate.

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What is the difference between a lien and a mortgage?

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