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Houston Consumer Protection – Lien Enforcement Laws

The concept of a lien is central to real estate law, consumer law and corporate law in Galveston, the greater Houston area and Texas as a whole. A lien represents an interest in a tangible asset, such as a piece of real estate. Lenders typically enforce liens to ensure that they receive full repayment of any monies lent out. Other parties, including contractors and subcontractors, may also place liens on homes to secure their financial interest – sometimes known as “sweat equity” – in the property.

Unfortunately, not all lien enforcement activities are legitimate. To ensure that lien enforcement remains within the bounds of the law and does not precipitate costly commercial litigation, borrowers are advised to understand the interplay between real estate law regulations and consumer protection regulations in Texas.

Lien Enforcement and Consumer Protection Law in Texas

The lien enforcement process has several key components:

  • Lien Perfection: To perfect a lien and render it legally enforceable, a lender or other entity must file the relevant mortgage with the proper legal authorities
  • Lien Priority: Once a lien has been perfected, the lender can claim “priority,” ensuring that the lender’s interest receives precedence over those of lenders that have not yet taken this step
  • Foreclosure: During foreclosure, all interests that have been secured by prioritized liens are paid using the proceeds from the forced seizure and sale of the property

At each step of the process, lenders must stay within the bounds of applicable rules and regulations. Borrowers who believe that their lenders’ actions are violating the law should contact the Texas Attorney General, the Office of the Consumer Credit Commissioner and a seasoned commercial attorney.

Work with a Seasoned Houston Corporate Attorney

Although lenders are well within their rights to enforce relevant liens, it is equally important for borrowers to understand the implications of unjust lien enforcement for the economy and business planning activities in Galveston, Sugar Land, The Woodlands and the rest of the Houston area.

Accordingly, the seasoned consumer protection attorney at The Law Office of Henry A. Jakob, PLLC devote substantial resources to a wide range of lien enforcement issues related to mortgage credit and secured credit. With experience in corporate and financial law, our experienced lawyers are intimately familiar with the needs and concerns of aggrieved consumers. We are fully committed to investigating and pursuing alleged violations of financial regulations and the public trust.

Whether you are a Pearland homeowner who worries about losing his or her house due to an improperly enforced lien or a Katy landlord who wishes to deter creditors from perfecting and enforcing a lien, we are qualified to evaluate the facts of your case and determine how best to secure redress.

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If you would like to learn more about our Houston lawyers’ experience on a wide range of consumer protection matters, including lien enforcement, secured credit and mortgage credit, please fill out the online contact form or call us at 713.640.5700 to schedule a consultation.

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