MORTGAGE LIEN Meaning and
Definition
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A mortgage lien refers to a legal claim or encumbrance on a property that is granted to a lender as security for a mortgage loan. It is a type of lien that is specific to real estate transactions. When a person or entity takes out a mortgage loan to finance the purchase of a property, the lender will typically place a mortgage lien on the property to ensure repayment of the loan.
The mortgage lien serves as a security interest that gives the lender the right to foreclose on the property if the borrower fails to make the agreed-upon mortgage payments. In other words, it gives the lender the legal right to seize and sell the property to recover the outstanding loan amount.
The mortgage lien is typically recorded in the public records of the county or jurisdiction where the property is located. This public record provides notice to all interested parties, such as future lenders and potential buyers, that the property has an existing mortgage lien.
In the event of a foreclosure, the mortgage lienholder has priority over other creditors, meaning they have the first right to proceeds from the sale of the property. Any remaining funds after satisfying the mortgage lien may be used to pay off other liens or debts associated with the property.
Overall, a mortgage lien is a legal claim that grants a lender the right to seize and sell a property to recover the outstanding loan amount in the event of default by the borrower.
Common Misspellings for MORTGAGE LIEN
- nortgage lien
- kortgage lien
- jortgage lien
- mirtgage lien
- mkrtgage lien
- mlrtgage lien
- mprtgage lien
- m0rtgage lien
- m9rtgage lien
- moetgage lien
- modtgage lien
- moftgage lien
- mottgage lien
- mo5tgage lien
- mo4tgage lien
- morrgage lien
- morfgage lien
- morggage lien
- morygage lien
- mor6gage lien
Etymology of MORTGAGE LIEN
The etymology of the word "mortgage lien" can be traced back to two distinct origins.
1. Mortgage:
The word "mortgage" comes from the Old French word "mortgage" or "mort gage", which is a combination of the Latin terms "mors" meaning "death" and "gage" meaning "pledge". The term refers to a legal agreement where a borrower pledges their property as collateral for a loan. If the borrower fails to repay the loan as agreed, the lender has the right to take possession of the property.
2. Lien:
The word "lien" has its roots in the Old French term "lien", which means "bond" or "obligation". This term was derived from the Latin word "ligamen" or "ligare" meaning "to bind".
Similar spelling word for MORTGAGE LIEN
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