All about Liens

The terminology surrounding property law and issues of personal finance can be complex, but having at least a small grip on many of these concepts can be immensely helpful when faced with important decisions. One of these complex issues involves what are known as liens.

Lien is basically the term for a claim or hold on some form of property that is being used as collateral in a loan or mortgage. It is the formal, legally-enforceable way of saying, “if you default (are not able to pay back) on what I have lent, I can take possession of this property.” Liens are typically agreed to between the borrower and lender. However, they can also be imposed by a court, in which case the lien is referred to as “non-consensual.”

Liens can be especially tricky because they are not always readily apparent. This means if you are purchasing property, it is important to make sure it does not come with the “extra baggage” of a lien that will keep you from selling it or otherwise limit your financial options. To thoroughly explore this possibility, it is a good idea to conduct a title search through a company that specializes in such endeavors.

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Liens can take dozens of forms in dozens of situations, each one with its own set of considerations. For more information on how liens can affect your financial well-being, and to find out if bankruptcy might be an option in your particular case, contact the experienced Boca Raton bankruptcy lawyers at the law offices of Eric N. Klein & Associates, P.A., by calling 561-353-2800 today.