What does the term "Lien" mean in the context of property?

Lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation that it secures is satisfied. In this context, it refers specifically to a charge against property that serves as security for a debt, meaning that if the borrower fails to meet their financial obligations, the lien may allow the creditor to take possession of the property to satisfy the debt. This concept is commonly encountered in various financial transactions involving real estate, vehicle purchases, and other forms of property, helping to ensure that creditors have a form of recourse in case of default.

The other options do not relate to the definition of a lien. A form of insurance policy pertains to risk management and protection against loss but does not imply a debt security mechanism. The legal process for filing a claim refers to the steps taken to pursue legal action or enforce a right but does not define a lien itself. A type of market analysis regards evaluating market trends and conditions, which is entirely separate from the concept of property and security interests.