Under which circumstance would the creditor be allowed to enforce a lien?

A creditor is allowed to enforce a lien primarily when a borrower fails to meet their obligations as set forth in the loan agreement. When a borrower makes late payments, they may be in default, which can trigger the creditor’s right to enforce the lien on the property. A lien serves as a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. If the borrower does not adhere to the payment schedule, the creditor can initiate legal processes to claim the property or force a sale to recover the owed amount.

The other circumstances presented do not provide the creditor with immediate grounds to enforce a lien. The agreement to loan terms does not by itself give rise to a lien enforcement, as the borrower must fulfill their payment obligations. The completion of a contract for deed typically indicates that payment terms have been established and does not invoke lien enforcement unless an agreement is broken. Lastly, a home inspection is simply a procedural step in the buying process and has no direct relation to the enforcement of a lien against the property. Understanding these principles is crucial for grasping the responsibilities and rights outlined in real estate finance.