Information About Mortgage Liens

Homeownership is associated with the American Dream. Of course, your Dream Home may turn into a financial nightmare in the event that a lien is placed upon the property. Property liens lead to foreclosure when particular terms go unmet.


Liens refer to financial claims that are backed by property. Property backs these claims as collateral and is seized for non-payment. Mortgage loans are actually types of liens where your home is the collateral.

Consensual and Non-Consensual Liens

Liens are categorized into consensual and non-consensual varieties. Mortgages are consensual liens against the home. Tax and child support liens are example of non-consensual liens that may be placed against your house through court proceedings.

Secured and Unsecured Debt

Differentiate between secured and unsecured debt. Liens are secured obligations—backed by property. Unsecured debt is backed by good faith. For example, credit card companies cannot place liens upon your home in the event of default.


Property tax liens upon homes do not follow old owners, but actually stay with the property. New buyers are responsible for paying these back taxes. County treasury offices provide information related to tax liens upon local real estate.

Financial Risks

Institutions foreclose homes and auction them off to compensate themselves for extending credit. Foreclosed homes generally depress area property values.

Information About Mortgage Liens, Sources:

Federal Trade Commission: FTC Consumer Information – Mortgages / Real Estate

Federal Trade Commission: Mortgage Payments Sending You Reeling?

U.S. Government: Mortgages for Home Buyers and Homeowners

More From Onyx Investments and Kofi Bofah, President:

Mortgage Advice

The Mortgage Contract Agreement

Treasury Bonds and Mortgage Interest Rates

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