home lien

A legal claim on a house that is filed in the county records office, usually as a response from outside parties because of unsettled financial obligations against the owner. Such claims must usually be dealt with before purchasing or selling the house, as well as seeking home-equity based loans. Common examples of liens are mechanic's liens filed by the contractors who built the home until they are paid in full, judgment liens when someone wins a court case against you, and tax liens imposed by the IRS for failure to pay income taxes.