ComplianceFinanceOctober 19, 2022

Do liens expire? Why renewing matters.

Lien Extension Services
Learn how to automatically renew your liens with our Auto Continuation service.

As a financial institution, you understand the importance of monitoring and managing your liens, as this is essential to the success and growth of your business. When a lien lapses, it can cause serious complications and cause clients to lose trust in your institution. Thankfully, there are ways to stay on top of lien renewal and ensure that your portfolio is properly maintained at all times.

Do liens expire? Why renewing matters

The majority of liens expire within five years. That means that a full portfolio will continually have liens that are nearing their expiration. The problem that occurs is that if you need your liens or loans to extend beyond five years, then you need to file a lien extension. A UCC-3 Continuation will extend your interest in the property that is being secured beyond the initial five years.

However, you have a narrow window for a lien continuation. In most instances, you must apply for a lien continuation no greater and no less than six months before the UCC-1 financing statement is set to expire. If you fail to extend the lien within that period of time, then you will have to file a new UCC-1 financing statement and will lose your current position on the loan. That can have serious complications and negative consequences for your lending institution. Therefore, making sure that you stay on top of your lien renewals is key to the success of your business.

Lien management software

If you manage a large portfolio with many different liens and loans, then you won’t be able to manually track all of your continuations with accuracy. Lien management software or a lien management system will ensure that you keep up with all of the property in which you have an interest. It will also help you monitor the status of all of your liens in an easy, straightforward way and answer important questions like when to file a UCC continuation and how many times can a lien be renewed.

Automatic continuation for liens

The best way to make sure that all of your liens are extended is with Auto Continuation. Auto Continuation is an automated solution that issues alerts when your UCC filing expiration is approaching and a continuation needs to be filed. This allows you to take timely action and accurately manage your liens without letting anything slip by.

Automatically continuing liens and loans in your portfolio takes the stress and repetitiveness out of lien management. When you know when your UCC financing statement expiration is approaching, you can better plan your time and your schedule. It also frees up the time of your team and ensures that you stay on top of every loan in your portfolio as your business continues to grow and expand.

How Lien Solutions can help you take control of your portfolio

At Wolters Kluwer Lien Solutions, we want to help you maintain your interest in every lien and loan in your portfolio. That’s why we offer Portfolio Sync, a lien management system that helps you monitor all of the liens in your portfolio, no matter where they are filed. You can also use Auto Continuation to automatically continue your liens.

To learn more about how we can help you protect your portfolio and deliver exceptional service to your clients, contact us and discover all about our amazing tools for financial lending institutions.

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