A lien is defined as an obligation pay a money encumbrance that may be voluntary or involuntary. An owner may choose to borrow money , using the property as security for the loan , creating a voluntary lien. What many people dont know is that a voluntary lien does NOT have to be recorded.
Typical voluntary liens include trust deeds and mortgages. On the other hand, if the owner does not pay taxes or the debt that is owed, a lien may be placed against his or her property without permission, creating an involuntary lien. Typical involuntary liens include :
(1) Mechanic`s Liens
(2) Judgements
(3) Tax Liens
(4) Attachements
A lien may be specific or general. A specific lien is one that is placed against a certain property. These include mechanic`s liens, trust deed, attachement, property tax lien, and lis pendens. A general lien affects all property of the owner such as a judgement lien or federal or state income tax liens.
In conclusion,
!!!!! ALL LIENS ARE ENCUMBRANCES BUT NOT ALL ENCUMBRANCES ARE LIENS !!!!!!!
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