How does a lien differ from a mortgage?

A lien serves as a legal claim or right against assets that can be used to satisfy a debt, meaning that a creditor can take possession of the property if the borrower fails to meet the obligations of the debt. In contrast, a mortgage specifically pertains to real estate and is a type of lien that establishes a security interest in a property used to secure the repayment of a loan. When a borrower takes out a mortgage to purchase a home, the lender places a lien on the property, which gives them the right to foreclose on the property if the borrower fails to make mortgage payments. Therefore, while all mortgages are liens, not all liens are mortgages; this distinction highlights the broader concept of a lien and narrows it down to the specific application of a mortgage.