What is a lien?

A lien is a legal right given to a creditor that allows them to secure payment of a debt. Liens are typically used when a borrower has not paid a debt in full. In the state of Washington, a lien can give a creditor the right to take possession of property owned by the debtor in order to force them to pay the debt. The lien gives the creditor the right to receive payment before any other debtors who have claims against the same property. For example, if someone borrows money from a bank and fails to repay it, the bank may put a lien on the borrower’s house. This means that the bank will have a legal right to the house until the debt is paid in full. Until then, the borrower cannot sell the house or pass it on to their heirs. Some liens are voluntary, while others are involuntary. For example, a debtor may voluntarily sign a lien to give a creditor a legal right to their property because they anticipate not being able to pay their loan in full. On the other hand, the court may order an involuntary lien be placed on a debtor’s property. These liens remain in place until the debt is paid in full. In Washington, creditors have the right to pursue collection of a debt, including the right to place a lien on a debtor’s property. A lien may help creditors recover the money owed to them, but it can also be a burden to debtors as it limits their ability to use, sell or pass on the property.

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