Claim Against Property (4) - Crossword Clue
Answer: LIEN
Understanding the Claim Against Property Crossword Clue
The crossword clue "Claim against property (4)" has one definitive answer: LIEN. A lien is a legal claim against property that secures payment of a debt or obligation, giving creditors the right to take possession of property if payments are not made.
What is a LIEN?
LIEN is a four-letter legal term describing a claim against property that serves as security for a debt or other obligation. When someone places a lien on property, they establish a legal right to take possession of that property if the underlying debt remains unpaid.
Types of LIEN Claims Against Property
Different categories of liens serve various purposes in protecting creditors and securing property-related debts:
Voluntary LIEN Agreements
- Mortgage Liens: Banks and mortgage lenders place liens on real estate properties to secure home loans, creating the most common type of voluntary lien arrangement.
- Auto Loan Liens: Vehicle financing companies maintain liens on cars, trucks, and other vehicles until borrowers complete their loan payments in full.
- Home Equity Liens: Second mortgages and home equity lines of credit create additional liens against residential properties, securing these secondary financing arrangements.
LIEN Verification Methods
- Direct Creditor Contact: Buyers and lenders often contact lienholders directly to verify payoff amounts and obtain written payoff statements.
- Court Record Review: Judgment liens require examination of court records to understand the nature and amount of underlying legal obligations.
- Tax Authority Confirmation: Tax lien research involves contacting relevant tax authorities to confirm tax obligations and payment requirements.
Claim Against Property (4) - 7 Little Words - FAQs
Q: Can a property have multiple liens at the same time?
A: Yes, properties can have multiple liens from different creditors, though priority rules determine which liens get satisfied first during property sales.
Q: Do liens automatically expire after a certain time?
A: Some liens have expiration dates, while others remain valid indefinitely until the underlying debt is satisfied or legally challenged.
Q: Can homeowners sell property with existing liens?
A: Generally, liens must be satisfied at closing from sale proceeds, though buyers may occasionally agree to assume certain liens.
Q: What's the difference between a lien and a mortgage?
A: A mortgage is actually a specific type of lien used to secure real estate loans, making mortgage and lien related but distinct legal concepts.
