A tax lien is a lien acquired by court order that gives the government a security interest in property because of a failure to pay assessed taxes. If the property is mortgaged a tax lien will take precedence over the mortgage. This is why a mortgage lender may choose to protect the value of its own lien by paying the tax debt and seeking reimbursement from the property owner.
[Last updated in June of 2024 by the Wex Definitions Team]