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

A real estate lien and a mortgage are two distinct types of real estate litigation law found in Texas. Generally speaking, a real estate lien is a type of security interest granted over a piece of property. The lien is usually placed on a property to secure a debt, like an unpaid loan, and it lasts until that debt is paid off. A mortgage, on the other hand, is an agreement made by a borrower to borrow money from a lender, typically a bank, to purchase real estate. The borrower then agrees to pay the lender back over a set period of time with interest. The main difference between a real estate lien and a mortgage is the purpose for which each is used. A real estate lien is used as a guarantee for a debt, while a mortgage is used to finance the purchase of a property. A real estate lien is typically placed on a property before it is purchased, while a mortgage is most often obtained after a property has been purchased. Additionally, a real estate lien must be paid off before a property can be sold, while a mortgage usually has to be paid off before a sale can be finalized. In short, a real estate lien and a mortgage are both types of real estate litigation law commonly found in Texas. But while a real estate lien is placed on a property as a guarantee for a debt, a mortgage is used to finance the purchase of a property.

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

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