If a customer is in arrears on their consolidation loan a lending institution may choose to place a lien on the customers house for the purposes of:

Notifying the customers creditors that the customer is a bad risk and they should not provide the customer any additional funds.

Forcing the customer to sell the house to repay the debt.

Ensuring that the lending institution has access to any surplus funds should the customer choose to sell their home in the future.

Ensuring that the government does not have first access to surplus funds should the customer miss their property tax payments and be forced to sell their house.