Which lien is created when a property is financed with a mortgage?

• A. Mortgage Lien
• B. General Lien
• C. Special Assessment Liens
• D. Equitable Lien

Answer: (A)

The main idea here is that financing a property with a mortgage creates a security interest in the property to ensure the loan is repaid. This is a mortgage lien: a specific lien that attaches to the property itself. It’s created by the mortgage agreement and runs with the land, so future owners are also subject to it. If the borrower defaults, the lender can foreclose to recover the debt from the property sale.

This differs from a general lien, which would cover all of a debtor’s property, not just a single property. It also isn’t a special assessment lien, which arises from local public improvements and is tied to a specific property but not necessarily tied to a loan. And it isn’t an equitable lien, which is created by a court to prevent unjust enrichment and isn’t the result of financing a loan.