What does a mortgage lien represent?

A mortgage lien represents a legal claim against a property that is put in place by a lender when it provides financing for the purchase or refinancing of that property. This lien secures the loan, meaning that if the borrower defaults on the mortgage payments, the lender has the right to take possession of the property through a legal process known as foreclosure. This directly relates to the lender's interest in the property as collateral for the loan.

Understanding this concept is essential for anyone involved in real estate transactions as it underlines the relationship between financing and property ownership. The other options pertain to different aspects of property and tenancy rather than the concept of a mortgage lien itself.