Mortgage lien
The lien the lender puts on the property to secure the loan. It gets released when the loan is paid off, whether at sale or refinance or after 30 years of payments.
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See how it worksWhere this comes up: closing
Part 1 of 4
Why a seller cares
Your lender's lien is the first thing paid at closing and the first release recorded after it. The payoff letter is what the title company pays against, and a lien not released after a past refinance can turn up on the search.
Part 2 of 4
A simple example
Your current lender is paid $205,000 at closing and records a release. The search also found a 2015 lender whose release was never recorded.
| The lien | What happens |
|---|---|
| The current mortgage | Paid from the buyer's funds; release recorded within weeks |
| A refinanced loan never released | The old lender issues a release; the title company chases it |
| A second mortgage or HELOC | Paid and released after the first |
Every mortgage that ever touched the home leaves a lien until somebody records a release.
Part 3 of 4
What people get wrong
That paying off a loan ends the lien. The release has to be recorded, and old ones sometimes were not.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines mortgage lien in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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