Real Estate Law
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Are you asking if the creditor can legally file the lien? If so, then the answer is yes because they have a legal judgment against you and are entitled to secure it by filing it as a lien.
The fact that they negotiated a payment arrangement with you to accept payments wouldn't mean that they have to remain unsecured creditors until the debt was paid off. But as long as you continue to make the payments until paid off, they couldn't do anything to foreclose on the lien or they would be in breach of contract.
If this is your homestead where you live, the creditor could still file a lien, they just couldn't enforce it by foreclosing on it if you had less than the statutory equity exemption amount which ranges from $75,000 up to $175,000 depending on whether you are married or not, disabled, and your age..
So while it isn't "exempt" from being liened, it may likely be protected from having the lien foreclosed on and enforced unless you have over a certain amount of equity in it.
But then again, as long as you continue to pay under the payment agreement as agreed, they couldn't foreclose on the lien either.