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Lienholder

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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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“We know we can't really save SoVo – that name now belongs to a bankruptcy court and lienholders – but we can save SoVo's mission,” former editor Laura Douglas-Brown said in a blog post located at savesovo.
Parties to a loan transaction always have compelling reasons for disbursement of loan proceeds to someone other than the holder of title or the lienholders.
In recent discussions with servicers, investors in mortgage-backed securities and administration officials, it has become clear that one of the most significant impediments to the success of H4H is the unwillingness of subordinate lienholders to extinguish their liens as required for participation in this program, even in return for offers of reasonable compensation," Dodd and Frank wrote the regulators.
 
 
 
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