tag:blogger.com,1999:blog-5877872196122597956.post659280608740401472..comments2024-02-14T14:47:58.061-08:00Comments on Word Salad: Chain ReactionColeslawhttp://www.blogger.com/profile/06813319585807128092noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5877872196122597956.post-6451394824162409882011-10-25T09:04:45.528-07:002011-10-25T09:04:45.528-07:00A lien is "a right to keep possession of prop...A lien is "a right to keep possession of property belonging to another person until a debt owed by that person is discharged". If you use your house (or any other real estate) to secure a loan, the lender holds a lien on your property until you pay the lender. In our case, we paid the lender the amount that was on the line of credit, but since the line of credit was not formally closed out, the (now non-existent) bank still holds a lien on our property. <br /><br />Escrow is money that is held in trust or as a security, in this case, it is money that I paid along with my mortgage payment that was held in an escrow account to pay my taxes and insurance. The mortgage company added up the annual amount of my taxes and insurance, divided that amount by twelve, and added that amount to my mortgage payment. Then once a year, they paid my insurance and taxes. Except in some cases, as I wrote about, they didn't.<br /><br />Once I had a conventional loan, I added up the annual amount of my taxes and insurance, divided that amount by twelve, and put the money into a savings account every month so I would have the money to pay my taxes and insurance. I got to keep the interest on the savings account, and I actually paid the insurance and taxes every year, unlike Ginormous and BOMTICC. I still do.Coleslawhttps://www.blogger.com/profile/06813319585807128092noreply@blogger.comtag:blogger.com,1999:blog-5877872196122597956.post-8658643957886217302011-10-25T08:35:46.852-07:002011-10-25T08:35:46.852-07:00What's a lien? What's escrow?What's a lien? What's escrow?Anonymousnoreply@blogger.com