What is the difference between a lien and a mortgage?

A lien and a mortgage are both legal documents that deal with a piece of property, but they serve different purposes. A lien is a legal claim against a property that a creditor has in order to guarantee payment of a debt. Liens can be placed on a property when a person has not paid certain bills, such as taxes or debts to contractors. A lien can also be placed on a property by a judgment creditor. On the other hand, a mortgage is a loan taken out for the purpose of purchasing a piece of real estate. Mortgages are typically for larger amounts of money and involve large sums of money over a long period of time. Mortgages are secured by the property itself, meaning that if the mortgage is not paid, the property can be seized in order to satisfy the debt. In Iowa, under residential real estate law, a lien is a legal right that a creditor has due to an unpaid debt. Mortgage law and lien law are two separate and distinct areas of law; a mortgage is a loan agreement between a borrower and a lender, while a lien is a claim against a property in order to secure payment of a debt. In both cases, the creditor must take steps to collect the debt through legal means, such as filing a lawsuit or taking the property through foreclosure.

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What is the difference between a lien and a mortgage?

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