What Is Lien?

A lien is a legal claim a creditor places on your property, giving them the right to seize or force a sale if you fail to pay your debt. When you take out a mortgage, the lender files a lien against your home, and it stays on the title until you pay off the loan in full.

For example, if you owe $280,000 on your mortgage and want to sell your home for $400,000, the lien means your lender must be paid the $280,000 at closing before you receive any proceeds. Liens are recorded at your county recorder’s office and appear in a title search. If there are multiple liens — such as a first mortgage plus a $50,000 home equity loan — they are paid in order of priority, with the first lien satisfied before the second.

Key Facts

• Voluntary lien: A mortgage lien you agree to when you borrow to buy a home
• Involuntary lien: Tax liens or mechanic’s liens placed without your consent for unpaid debts
• Priority order: First mortgage is paid first, followed by second liens, then junior liens at sale
• Title search: A title company checks for existing liens before you buy to ensure clear title
• Lien release: Your lender files a release with the county once the mortgage is fully paid off
• Impact on sale: All liens must be satisfied or negotiated before a property can transfer to a new owner

Frequently Asked Questions

How do I know if there is a lien on my property?

You can search public records at your county recorder or clerk’s office, or request a title search through a title company. Any existing liens — including mortgages, tax liens, and judgment liens — will appear on the report. Reviewing this before listing your home avoids surprises at closing.

Can I sell my house if it has a lien?

Yes, but the lien must be paid off from the sale proceeds at closing. If your home’s sale price does not cover all outstanding liens, you would need to pay the difference out of pocket or negotiate a short sale with your lender.