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A lien is an encumbrance on the deed of an individual's real property. In the case of a home, since the lien acts as a cloud on the title, the property cannot be sold or transferred until the lien is removed.
Function
In the case of a home, the bank that holds the mortgage technically has a lien because the mortgage must be paid off first before you can sell your house.
Features
A lien can also be placed on a home by an individual who has prevailed in a civil action for damages against a homeowner.
Judgment Required
To obtain a lien, a plaintiff must first obtain a judgment issued by a court of competent jurisdiction against the homeowner.
Lien Of Judgment Creditor
Once the plaintiff secures a judgment, he becomes a judgment creditor and can attempt to satisfy his judgment for money damages by utilizing the post-judgment collection procedures authorized by law, which include attaching, or placing a lien on, the judgment debtor's property.
Types
The lien of a judgment creditor is junior to that of the bank that holds the mortgage.
Considerations
A lien can be dissolved by paying down the balance of the mortgage, or in the case of a judgment creditor, by paying off the amount of the judgment.
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