Soft Vs. Hard Liens

I know of only two types of liens. I think your thinking of a "Super Lien" or "Superior lien" besides the regular lien/judgement. The difference is that on a Super lien it puts the HOA on the same level as the bank in regards to who gets paid back. Otherwise, regular liens the bank always gets paid first and foremost. There is no equal footing. Only a few states offer these types of liens.

Most of the time there isn't much money for any party to be paid. The next step is foreclosure on the lien. Which is really when this type if lien comes into play. If the bank forecloses and the HOA is owed, the bank gets paid first and the HOA gets the leftovers if any. If the HOA foreclosed on the lien before the bank, the bank still gets paid first/foremost. The super lien would just put the HOA on the same level as the bank where they may split the spoils so to speak.

I didn't see anything when I did a Google search, but after looking at the link listed below, I suspect "soft" vs. "hard" liens may be bafflegab for secured vs. unsecured liens:

http://www.bizfilings.com/toolkit/sbg/run-a-business/assets/different-lien-types-change-creditors-rights.aspx