What type of lien allows a creditor to take possession of a debtor's property due to default?

The answer relates to a judgment lien, which is a type of lien that arises when a creditor obtains a court judgment against a debtor for a specific amount of money. This legal action allows the creditor to place a lien on the debtor’s property, which means that the creditor has a legal claim to the property as security for the payment of the debt. In the event that the debtor defaults on the debt, the creditor can enforce the lien, potentially leading to the sale of the property to satisfy the judgment.

When a judgment lien is established, it serves as a public declaration that the creditor has a right to the property. This often serves to protect the creditor’s interests and provides a mechanism to recover funds owed through the sale or transfer of the debtor's property.

In contrast, a mortgage lien is specifically tied to real estate financing and gives the lender rights to the property if the borrower defaults on the mortgage. A special lien typically refers to specific types of debts like tax liens or mechanics' liens, which need not arise from a court judgment. An equitable lien, on the other hand, is established by the court based on fairness, often without formal legal proceedings, and does not provide the same assertive control over property as a judgment lien does.