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What is the purpose of a lien when you get a secured loan?.
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What is the purpose of a lien when you get a secured loan?.

User Chris Koiak
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23 votes

Answer:

If you have trouble paying the loan, the lender can put a lien on the collateral (a lien is the legal term for the lender's claim to the borrower's collateral.) The lender can keep the lien active until the loan is fully paid. At that point, the lien is lifted, and the collateral ownership reverts back to the borrower.

Step-by-step explanation:

User GolamMazid Sajib
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