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What Is a Lien?

By Kristi WaterworthUpdated Jan 1, 2025 at 10:59 AM

Key Points

  • Liens secure loans by allowing creditors to claim or sell property if debts are unpaid.
  • Common lien types include bank, judgment, mechanic's, real estate, and tax liens.
  • To mitigate lien risks, negotiate payment terms or fulfill debts to release the lien.

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