A homestead estate refers to a legal provision that helps to protect a primary residence from being used to settle debts with creditors, known as homestead laws. These laws offer homeowners a certain degree of financial security by exempting their property from forced sale under certain conditions.
A lien is a legal claim or right against a property that is used as security for the payment of a debt, judgment, mortgage, or taxes. It serves as an encumbrance and imposes restrictions on transferring the property until the debt is satisfied.
A lienholder is an individual or entity that holds a lien on a property, thus having a legal right or claim against the property as a security for a debt or obligation.
Nonrecourse financing refers to loans secured by collateral, typically real estate, where the lender's ability to recover the debt is limited to the proceeds from the sale of that collateral alone, with no further recourse to the borrower's other assets.
A voluntary lien is a claim on a property that the owner agrees to, commonly seen in the form of a mortgage. Unlike involuntary liens, which are imposed without the owner's consent, voluntary liens are willingly granted by property owners to secure debt.
