What is the difference between a lien and a mortgage?

A lien and a mortgage have two different purposes when it comes to residential real estate law in New Hampshire. A lien is a legal claim on a property by another party for the payment of a debt or to secure a performance of an obligation. A lien gives the lien holder the legal right to take possession of the property in order to sell it to cover the debt. On the other hand, a mortgage is a contract between a lender and borrower in which the borrower pledges their home as collateral for the loan. The borrower must make regular payments on the loan, and if the borrower fails to do so, the lender has the legal right to take possession of the property for their own benefit. In conclusion, a lien is a legal claim on a property by another party, while a mortgage is a contract between a lender and borrower that requires the borrower to make regular payments on the loan. If the borrower fails to make those payments, the lender has the right to take possession of the property. Both lien and mortgage are important aspects of residential real estate law in New Hampshire.

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