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What Is a Perfected Lien?

Assuming you would like an article discussing what a perfected lien is:

A perfected lien is a security interest in property that has been properly filed with the appropriate government office. This gives the holder of the lien the right to seize the property if the owner fails to meet the terms of their agreement. Perfecting a lien is important for lenders because it allows them to recoup their losses if a borrower defaults on their loan.

There are two ways to perfect a lien: possession and control. Possession means that the lender physically takes possession of the property, such as when a car is repossessed. Control means that the lender holds title to the property, such as when a house is foreclosed upon.

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