A consensual lien is when the debtor consents to the lien, as in a loan or an advancement of a line of credit. This differs from statutory liens or judgments because under those types of liens the debtor did not consent to the lien, but the creditor has a legal right to recover the debt.
There are two main types of consensual liens. The first is known as a purchase-money security interest lien. Under this type of lien, a creditor lends money to the debtor for the specific purchase of buying the property which will secure the debt. An example of a purchase-money security interest lien is a mortgage on a home.
The second main type of consensual lien is the non-purchase-money security interest lien. Under this type of lien the debtor puts up property that he or she already owns to secure the debt. The debtor can then use the loan to pay for whatever he or she needs. An example of a non-purchase-money security interest lien would be a second mortgage on a home owned by the debtor.
If you have a collections problem, an attorney can help you protect your rights. In the event that you have to go to court, an attorney can help guide you through the complicated legal process.
Last Modified: 02-13-2012 04:21 PM PSTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.