Just getting started question...

[patrick3002]

I was wondering if anyone could help me understand the definition: Encumbered?

Also, what does it mean to have a property that is 100% encumbered?

I appreciate all of your help!

~Patrick

[Mdhaas]

Encumbrance - any right to or interest in land that affects its value, including mortgage loans, unpaid taxes, easements, junior liens, or deed restrictions.

Just as a note, there is an investing glossary link on the top left side of this page.

[donnawanna32]

encumbered is a way of saying that it has some type of lien, or someone else has an interest in the property.