PSI Property Ownership Practice Exam 2025 – Comprehensive Test Preparation

A mortgage lien is a type of lien that specifically arises when a property is financed through a loan secured by the property itself. When a buyer takes out a mortgage to purchase a home, the lender places a lien on the property as collateral for the loan. This means that if the borrower fails to make mortgage payments, the lender has the legal right to take possession of the property through foreclosure to recover the outstanding debt.

In contrast, special assessment liens are often imposed by local governments to finance public improvements that benefit specific properties, not typically related to financing. Equitable liens arise from a court's decision rather than a financing agreement, while tax liens are associated with unpaid property taxes owed to governmental authorities. Each of these options represents different types of legal claims against property, but a mortgage lien is the one directly connected to the financing of the property itself.