Home Lien

If you owe money to a loan shark, they might lean on you to get the funds back (threats to break your knees, etc.). A regular bank won't use those tactics. They go the legal route. They won't lean on you, but they will, uh...lien on you.

If you fall behind on a debt obligation (to a legitimate lender, anyway), they can attach what's called a lien on your property. The lien gives them a claim to the property as a way to collect on the debt. It's like achieving collateral after the fact.

In the case of the home lien, the claim attaches to your house. In effect, the lender owns a stake in the house. They can now use the property in order to get the money you owe them.

If you sell the house, they would be entitled to the lien amount. In extreme cases, the lien could allow the creditor to force the sale of the house, with the proceeds used to repay the debt.