A mortgage is classified as which type of lien?

A mortgage is classified as a voluntary lien because it is created when a borrower willingly agrees to secure a loan with their property. This occurs when individuals decide to enter into a mortgage agreement with a lender, thereby allowing the lender to place a lien on the property. The borrower consciously chooses to use their property as collateral, demonstrating their consent, which characterizes it as a voluntary lien.

In contrast, involuntary liens are typically imposed without the property owner's consent, such as tax liens or mechanic's liens. Encumbrances can refer to various claims against a property, which include liens but also other types of restrictions or claims that affect the use or value of the property. An equitable lien arises from a court's decree or an agreement rather than as a matter of contract, and it generally does not apply in the context of standard real estate mortgages. Thus, classifying a mortgage as a voluntary lien is accurate and reflects the nature of the agreement between the borrower and the lender.