What term describes a creditor's right to seize property if payments are not kept up?

The term that describes a creditor's right to seize property if payments are not kept up is a lien. A lien is a legal claim or right against assets that are used as collateral to fulfill a debt. When a borrower defaults on payments, the creditor can enforce the lien to recover the owed amounts by claiming the property associated with the lien.

In terms of context, an encumbrance generally refers to any claim against a property that can affect its value or use but does not necessarily imply the right to seize the property. A deed of trust is a document used in real estate transactions involving three parties: the borrower, the lender, and a trustee, that facilitates the securing of a loan with property but does not directly describe the right of seizure. A note, or promissory note, is simply the borrower’s written promise to repay a loan and does not represent a right over the property itself. Thus, the most accurate term in this context is a lien, as it specifically denotes the right to seize property if the borrower defaults on their obligations.