What does a mortgage lien allow a lender to do?

A mortgage lien grants the lender a legal claim against the property as security for the loan provided to the borrower. This means that if the borrower fails to meet their payment obligations, the lender has the right to initiate foreclosure proceedings. Foreclosure allows the lender to take possession of the property, sell it, and use the proceeds to satisfy the outstanding debt. This process reinforces the lender's ability to mitigate financial risk associated with the loan.

In contrast, obtaining ownership outright would not occur merely through a lien; ownership transfer typically involves a different legal mechanism, such as a deed. While a lender may be able to transfer the loan to another creditor, this action does not alter the nature of the mortgage lien itself and is not the primary function of such a lien. The option stating "none of the above" does not apply, as the mortgage lien indeed allows for foreclosure under certain circumstances.