loan lien

A **loan lien** is a legal claim or hold placed on an asset by a lender as collateral for a loan. It gives the lender the right to seize the asset if the borrower fails to repay the loan according to the agreed terms. Loan liens are commonly used in secured loans, such as mortgages or auto loans, to protect the lender’s interests. Understanding how loan liens work is important for both borrowers and lenders to ensure clarity and compliance in financial agreements.