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How does a creditor place a Lien on a piece of real estate an individual owns ?

Individual wants to borrow money in exchange for a lien on their house to pay back the loan when the house sells.

1 Answer

A lien is the right to retain possession a property of another until the owner fulfills a duty. For example a mortgage is a common lien.
The right of lien generally arises by operation of law, but in some cases it is created by express contract.
In this case the lien is intended to secure the payment of a debt and the lien can be imposed by a contract between the creditor and the debtor. The creditor then files the lien in the property records, and thus a lien is created against the debtor's property.

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