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For example, if someone takes out a loan to buy a car, the car dealer would be paid using the borrowed funds from the bank. In turn, the bank would be granted a lien on the vehicle. If the borrower does not repay the loan, the bank has the right to execute the lien, seize the vehicle, and sell it to repay the loan.
When a lien becomes public record, you may not be able to: Buy, sell, refinance, or transfer property. Get a personal or business loan. Get or keep a job.
A lien is a legal claim that creditors can put on your property in order to secure payment of a debt. Generally speaking, anyone you owe money to can put a lien on your property. This includes things like credit card companies, lenders, and even the government (if you owe taxes, for example).
A lien is a legal claim or right made by a creditor against an asset or property used as collateral to secure a debt. The primary purpose of a lien is to ensure that the underlying obligation, such as a loan repayment, is fulfilled.
Types of Liens Bank Lien: It arises when a financial institution provides a loan for purchasing an asset, such as a car or house. Judgment Lien: Imposed by a court after a legal judgment, usually in cases of nonpayment. Mechanics Lien: Real Estate Lien: Tax Lien: Lien - Definition, What is Lien, Advantages of Lien, and Latest News cleartax.in glossary lien cleartax.in glossary lien
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