Lien Vs Foreclosure?
Question:
Answer:
To anwer in ordinary terms-
Lien is someone who is a creditor who can place their name/company in the public records as a someone who is owed money by the person who owns the house. This is in the event the house gets sold-they will be paid first.
A foreclosure is what happens when people who have lien request a court to force the sale of the house due to nonpayment.
Usually, the major lien holder in most peoples property is the mortgage companies...
Lien: The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.
Foreclose:To bar an equity or a right to redeem a mortgage
I person or company with a lien on your property is generally using your property as collateral for cash they have given to you.
If a lienholder is not repaid according to the terms of an agreement between you and them, then they will at some point have the right to foreclose on the property.
The end point of a foreclosure is the property being sold at a public auction to repay all lienholders.
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