What distinguishes a real estate mortgage from a lien?

A mortgage is fundamentally a secured loan that is tied to specific real estate. When a borrower takes out a mortgage, they borrow money to purchase property and, in return, the lender holds a security interest in that property. This means that if the borrower defaults on the loan, the lender has the right to take possession of the property through foreclosure.

On the other hand, a lien is a broader legal claim against a property that may result from various circumstances, such as unpaid debts or obligations. While any type of lien may serve to secure a debt, not all liens function the same way as a mortgage. A mortgage specifically involves a loan agreement tied to real estate, while liens can be established for many reasons beyond just financing property, such as construction work or tax debts.

This understanding highlights the relationship between lenders and property owners and marks the difference in their respective roles: a mortgage represents a financing arrangement specifically secured by the property itself, whereas a lien may exist for different reasons and doesn't always indicate the same security interest as a mortgage does.