Childhoodmemoriesart

A tax lien is the collateral or the security for the mortgagee who has provided the security instrument. Information about the lien is registered at a county courthouse, or similar, to ensure the contract is official and binding. This is now a recorded legal agreement and cannot be reversed until the full balance of the debt is cleared. This is a strange situation where the mortgagor still owns the property even though the debt still remains to be paid.

The mortgage is a surety for the benefit of the mortgagee, so should the debt remain unpaid then the amount owed can be reclaimed by the sale of the property. Should they need to reclaim these costs then the case will be held in court and the procedure called foreclosure will be started.

To ensure that everything is legal and above board, the court will place a ruling on the disposal of the tax liens in a process called judicial foreclosure. Obviously there is much more to the subject than this, but these are the basic foundations upon which the mortgaging system has been constructed.