A great example of Occam's razor: "of any given set of explanations for an event occurring, the simplest one is most likely the correct one."

In fact I have done a lot of them for the investors from Bigger Pockets who live in California.The explanation @Linda Weygant gave is the best, for understanding the tax differences, and some of the formality differences.I think, maybe, youre asking a different question, that I'm asked frequently.

HOA liens sometimes also have special treatment by the laws in certain jurisdictions.If you are already working with an attorney (your last post mentioned an attorney), then you might be best served getting a bit of explanation for lien priority in that jurisdiction from your attorney.

@bill gulley thank you, man, for that simple English explanation.

@Michael Plaks thank you so much for serving the BP community with this explanation and example.

If I were you I would sit down with your insurance agent and get a good explanation on what policy would be best for you.

It may have been due to a poor explanation, so let me clarify.

Thank you for the explanation.

Read this if you need further explanation that it is in fact discriminatory. https://www.sfaa.org/Public/Magazine/02_2016/More_Isn_t_Merrier.aspxI am not one to get into an argument with someone on BP, but I feel like this is a platform meant to educate.

Is there some other explanation that I'm missing?