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Lienholder
(redirected from Lien Holder)

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Lienholder
The lender on a loan with collateral. When one has placed collateral on a loan, the lienholder has the right to take possession of the collateral in the event of default. One cannot sell the collateral until the loan is repaid.

Lienholder. A lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money using a particular asset, such as a car, as collateral.

As long as there is a balance due on the loan, the lienholder must be repaid before you are free to sell the asset.
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If they do not do that, the ultimate foreclosure of the property will lead to a cheaper property purchase - when the recent lien holder pays off the money owed, the property or home is rightfully theirs.
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