Unencumbered - Definition
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What is Unencumbered?
An asset is unencumbered when it is clear of any debt, liens, or claims. Conversely, when a property is encumbered, it means it is not free of financial liability or debt.
An asset may be encumbered if it is subject to any legal claim, such as when it is pleged as collateral for a loan, when it is the subject a legal action (lis pendens filed), or when there is a tax lien, judgment lien, mechanic's lien, or materialman's lien filed against it.
An asset that is unencumbered can be easily sold to a buyer or transferred to another party.
Academic research for Unencumbered
- The value of recourse and cross-default clauses in commercial mortgage contracting, Childs, P. D., Ott, S. H., & Riddiough, T. J. (1996). The value of recourse and cross-default clauses in commercial mortgage contracting. Journal of Banking & Finance, 20(3), 511-536.
- Not in that neighborhood: The effects of population and housing on the distribution of mortgage finance within the Chicago SMSA, Shlay, A. B. (1988). Not in that neighborhood: The effects of population and housing on the distribution of mortgage finance within the Chicago SMSA. Social Science Research, 17(2), 137-163.
- Covered Bonds: A New Source of US Mortgage Loan Funding?, Lucas, D. J., Fabozzi, F. J., Goodman, L. S., Montanari, A., & Peter, A. (2008). Covered Bonds: A New Source of US Mortgage Loan Funding?. Journal of Structured Finance, 14(3), 44.
- Mortgage options for retirees, Storms, P. (2001). Mortgage options for retirees. Journal of Financial Planning, 14(11), 42.
- Free and clear: national origins and progress toward unencumbered homeownership among post-civil rights era immigrants in the US, Emeka, A. (2019). Free and clear: national origins and progress toward unencumbered homeownership among post-civil rights era immigrants in the US. Journal of Ethnic and Migration Studies, 1-21.
- Enhancing poor and middle class earning capacity with stock acquisition mortgage loans, Ashford, R., & Kantarelis, D. (2016). Enhancing poor and middle class earning capacity with stock acquisition mortgage loans. Economics, Management and Financial Markets, 11(2), 11.
- Borrower Suitability Standards for Residential Mortgage Loans, Yen, E. C. (2010). Borrower Suitability Standards for Residential Mortgage Loans. Banking LJ, 127, 138.