A legal claim on your home that secures a debt. Your mortgage is a lien — the lender has the legal right to take the home if you don't pay.
A lien is a legal claim someone has against your property until a debt is paid. Your mortgage is the most common kind of lien — when you borrow money to buy a home, the lender records a lien on the property. That lien is what gives them the right to foreclose if you stop paying.
Mortgages create what's called a voluntary lien — you agreed to it when you took the loan. There are also involuntary liens: unpaid property taxes, contractor bills (mechanic's liens), and court judgments can all attach to your home. Any lien on the property has to be paid off before you can sell or refinance, and lenders won't make a new loan if there are unresolved liens.
Example
When you take out a $320,000 mortgage, the lender records a lien against your home for $320,000. As you pay it down, the lien amount decreases. When you pay it off entirely, the lender releases the lien and you own the home free and clear.
Also known as
mortgage lien, claim, encumbrance