What is the difference between a real estate lien and a mortgage?

A real estate lien and a mortgage are two different legal concepts that apply to real estate transactions in California. A lien is a legal claim against a piece of property that allows a creditor to recover a debt from the owner of the property. It is generally established when the homeowner fails to pay a debt or certain taxes. The lien holder is entitled to the property’s proceeds if the homeowner sells or refinances the property. A mortgage is a loan that is secured by property. The mortgage lender provides the funds for the homeowner and in exchange, the homeowner agrees to pay back the loan, with interest, over a certain period of time. The mortgage also gives the lender a lien on the property that acts as a security interest in case the homeowner defaults on the loan. The lender has the right to take ownership of the property if the homeowner defaults on the loan. In summary, the difference between a real estate lien and a mortgage is that a lien is usually established when the homeowner fails to pay a debt or taxes, while a mortgage is a loan secured with property and is typically used when the homeowner is looking to buy or refinance a home. A lien gives the lienholder rights to the proceeds of the property if it is sold or refinanced and a mortgage gives the lender ownership of the property if the homeowner defaults on the loan.

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What is the difference between a real estate lien and a mortgage?

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