Lien vs Encumbrance: What is the difference?
A lien represents a monetary claim levied against property to secure payment – the settlement of an obligation from the property owner, while encumbrance is a much broader term, referring to any sort of claim against a property. Any lien is an encumbrance, but not all encumbrances are liens.

Having such a claim against the property creates an unclear title and can limit the ability to sell or otherwise transfer the property. Liens attached by tax agencies are specifically referred to as tax liens. A federal tax lien is notable in that it takes precedence over any other claims by creditors.

An encumbrance is a claim against a property by a party that is not the owner. An encumbrance can impact the transferability of the property and restrict its free use. Any existing encumbrance is required to be disclosed by the owner of the property to potential buyers. A buyer will inherit the encumbrance upon purchasing the property. If a seller does not disclose existing encumbrances, he is subject to legal action by the buyer for his failure to do so.

Mortgage Payoff

Your payoff amount is how much you will actually have to pay to satisfy the terms of your mortgage loan and completely pay off your debt. Your payoff amount is different from your current balance. Your payoff amount also includes the payment of any interest you owe through the day you intend to pay off your loan.

Short Sale
A short sale is a home that is available at a purchase price that is less than the amount owed by its current owner.
The transaction benefits the bank by allowing it to avoid repossessing the home in foreclosure, which is expensive and time-consuming. The seller avoids the credit hit that comes with foreclosure and the bankruptcy that sometimes accompanies it.

Upside Down Mortgage
An upside-down mortgage is simply a mortgage in which the owner owes more than the house is worth. If you can afford the monthly mortgage payments and don’t want to move, being upside down may not have an immediate effect. However, it will take longer to build equity in your home, which will affect your ability to refinance or sell your home and make a profit.