What Does "Establishment of a Lien" Mean?

The establishment of a lien is the formal process in which a creditor places a hold, or lien, on a piece of property as a form of security to garnish the payment of a debt at the time of the property's sale. A debtor may pay the balance of the lien prior to the sale of the property, or may simply pay it through the proceeds of the sale.

Why Would a Creditor Choose a Lien?

A creditor often chooses to pursue a lien against a piece of property as a last resort to garnish repayment of a debt when no other method has reaped repayment. This is typically not a quick process and doesn't guarantee that the lien will ever be paid. If the property is never sold, or not sold for years, the lien may go unpaid for decades.

How to Remove a Lien

To be removed from one's property, a lien must be repaid. It doesn't have to be paid in one lump sum, but it's in the debtor's best interest to have copies of payments to have the lien formally removed by the courts, especially if multiple payments are made.


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