What is an Unperfected Lien

A Lien on Property uses the Property to secure a loan from a lender to a borrower.  A Perfected Lien is a lien that has been recorded with a legal authority.  For Property Liens, the lender usually files a Deed of Trust with whichever agency is responsible for recording Property Deeds.  By filing and recording Liens a lender gains protection from other parties making claims against a Property.  A Perfected Lien gives a lender priority in the event that the borrower fails to make payments on the Property.

An Unperfected Lien is a Lien that a lender has not filed with the correct legal authority.   As a result other creditors can make claims on the property.

A creditor with a Perfected Lien takes priority as far as being paid for the secured debt over creditors with Unperfected Liens.