Dictionary of Legal Terms

Marshaling of Liens

Part of a foreclosure action. The process of locating all potential lienholders, notifying them of the foreclosure and determining the validity of liens and the priority of all valid liens. The result of the marshaling of liens is to foreclose all outstanding liens within the same suit, thereby avoiding a series of foreclosures and forced sales. When one lienholder sues to foreclose his, her, or its lien, it is necessary to marshal all liens to: 1) give all lienholders a fair chance to collect at least some of their debts; 2) avoid multiple sales of the property; and 3) help obtain the best price for the property under the circumstances. See foreclosure, lien, priority of liens.

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This dictionary was developed by the Ohio State Bar Association with funding from the Ohio State Bar Foundation. The information contained in this dictionary is general and should not be applied to specific legal problems without first consulting your own attorney.

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