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A lien is a legal claim against an asset, like your home or car, used to secure a debt. It gives the creditor the right to take the asset if you don't pay what you owe.
In Depth
When you owe money, a lien gives the lender the right to take ownership of that asset if you don't pay. It essentially ties the debt to the property. This means you typically can't sell or transfer the asset until the debt is paid off and the lien is removed. Liens are common with mortgages and car loans.
Example
If you don't pay your property taxes, the government can place a tax lien on your home.