What distinguishes a mortgage from an IRS lien?

A mortgage is distinguished from an IRS lien by its voluntary nature. When a borrower takes out a mortgage, they willingly enter into an agreement with a lender to secure a loan for purchasing real estate. This process involves a legal contract where both parties consent to the terms, including the obligation to repay the borrowed amount with interest. The borrower chooses to create this lien on their property as a way to finance their home, making it a voluntary action.

On the other hand, an IRS lien is typically involuntary. It arises when the government takes action against an individual or entity that owes federal taxes. The IRS can place a lien on the property without the property owner’s consent, securing the government's interest in collecting owed taxes. This distinction underscores the inherent nature of the two types of financial encumbrances: one is a product of personal choice and agreement, while the other is a consequence of legal action taken by the government.

The other options do not accurately capture the fundamental differences between a mortgage and an IRS lien. Mortgages may vary in duration based on the terms agreed upon by the parties involved, and IRS liens do relate to property, as they encumber real estate to secure payment of tax debts.