Real Property Liens

Question 1

What is the difference between a specific lien and a general lien?

Answer 1

A specific lien is secured by a specific piece of property, and a general lien is secured by the collective assets of the person against whom the lien is held.

• Specific liens are secured by a specific piece of property. General liens are secured by the collective assets of the debtor. Many borrowers are under the misguided impression that there is no collateral securing a general lien (such as a credit card lien or signature loan). While both types of liens require collateral, general liens are actually secured by more collateral than specific liens. A lienholder of a general lien is within its rights to foreclose on any of the assets of the debtor; whereas a lienholder of a specific lien may only foreclose on the specific collateral named in the lien.