Which lien is placed on property when financing is secured by real estate?

A mortgage lien is a legal claim placed on real estate to secure a loan used to purchase that property. When a borrower takes out a mortgage, they are effectively using the property as collateral for the loan. This means that if the borrower fails to meet the obligations of the mortgage (such as making regular payments), the lender has the right to foreclose on the property, essentially taking ownership to recover the owed amount.

In the context of real estate and financing, a mortgage lien signifies that the lender has a vested interest in the property until the loan is paid off in full. This type of lien is essential for real estate transactions, as it allows individuals or entities to borrow money to buy properties that they may not be able to afford outright.

Understanding the nature of a mortgage lien is crucial for anyone involved in real estate, as it underscores the principles of financing and ownership related to property.