 TITLE: What Is a Lien? CONTENT: What Are the Different Types of Liens?\n--------------------------------------\nThere are several types of liens that can be filed against you. As mentioned, some liens are voluntary, and others don't require your consent because they're filed by a creditor as a result of nonpayment.\nThe following are the different lien types and the circumstance around how each are established:\n*   **Real estate lien**: A real estate lien is one that gives a creditor the right to seize and sell real estate property if someone defaults on an agreement. Mortgages are common real estate liens, and are an example of a voluntary lien that you agree to when you borrow money to buy a home.  \n    Additional liens can be placed against your real property, which can be both voluntary and involuntary. If you take out a second mortgage on your home, or use your home equity as collateral for another loan, a second (or third) lien would be recorded against that property. The lienholders (the creditors) in this case would be given priority based on when the lien was filed. Lien priority comes into play when you sell your home and also dictates who gets paid first if the property is ever liquidated or foreclosed.\n*   **Tax lien**: A tax lien is an involuntary lien that is placed on your property if you fail to pay state or federal taxes. Tax liens are given priority over all other liens, which means they must be paid first. Federal and state tax liens can be placed on assets including personal property. When left unpaid for extended periods of time, tax liens could result in the forced sale of your property, at which time all or some of the additional lienholders would be paid what they are owed from the proceeds of the sale.\n*   **Judgment lien**: A judgment lien is placed on your property or assets by a court that establishes you have an outstanding debt. Creditors that can prove you defaulted on an agreement and owe them money can file judgment liens in local courts. As with other liens, if your property is sold the lienholders will be paid from the proceeds of the sale.\n*   **Mechanic or construction lien**: Liens of this type must be filed through court and are placed against real property for which a contractor or subcontractor has performed work and was not paid by the property owner. A construction or mechanic lien can only be placed on the property the creditor worked on. END