What Does Lienholder on a Title Mean?

by Christopher Williams
Lienholders don't own your property, but they have some say over it.

When someone places a lien against the title to another person's property, such as a car or home, the lienholder has a financial interest that gives them certain rights to that property. When you take out a loan to buy something, for example, the lien documents the lender's right to reclaim the property through foreclosure or repossession if you default on the loan. Unsecured creditors, such as credit card companies, cannot place liens on the merchandise you buy. Liens remain in effect until you can prove that you have fulfilled all the loan's terms.

Lienholders' Authority

An example of lienholder authority is the requirement for insurance on the property secured by the lien. This protects the lienholder's financial interest. For example, if the property is damaged or destroyed, the insurance policy pays out to repair the car or house. This makes it more likely that the loan will be repaid and protects the lienholder's interest in the property.

Tax Liens

Secured credit isn't the only reason for the placement of a lien. If you don't pay your income or property taxes, the government can attach a lien to your property, including your house, vehicles and even investments. A tax lien documents the government's right to seize your property and sell it to satisfy the debt you owe. Note that a lien is only the documentation of that right, where as a levy is the instrument by which the property is actually seized.


About the Author

Christopher Williams has owned and operated his own small business since 2002, and has a wide range of professional experience in retail, sales and insurance industries. He's been writing professionally since 2004.

Photo Credits

  • Photodisc/Photodisc/Getty Images
Cite this Article | raiffeisen-cards.ru A tool to create a citation to reference this article Cite this Article

Related pages

va widows pension amountsec 125 on w2how to calculate daily accrued interestameriprise money markethow to write an autobiography for scholarshipstenant act albertaunemployed car loanirs certificate of release of federal tax lienhow long does it take to receive ebt cardgeico declaration pagecontingent vs primary beneficiarycheck scams on craigslistirs tax refund timelinewheres my ca refundmapco gas cardatm card magnetic stripamerican heart association cpr card lostsoft call provisionwhat banks cash third party checkswhat is bond refundingcpr certification expiresdo direct deposits post at midnightactuarial tables life insurancecan you refinance a car loan that is upside downcan you register your car if your license is suspendedcan i claim my disabled son as a dependentare student grants taxablecredit card reduction scamsbaker act north carolinatricare id cardswhat does pcu stand for in nursingcnn money futures after hourslife insurance contingent beneficiarybuying a house with bad credit and low incomeaccounting equation assets liabilities equitynotary in floridanew jersey probate codebank liability for forged checkscapital gain loss carry forwardcna registry ctamerican express serve atm locationscan you write off closing costs on taxesprobate statute of limitationsdefine 12b 1 feesbank accounts with bad credit overdraftstax free reimbursementannualcreditscore comgaap journal entrieswhat's cpapgmac cockeysville mddoes renters insurance cover fire damagescholarships for pre pharmacy students607 credit scorecan you buy lunch meat with food stampsreading forex chartsdoes it cost money to be homeschooledamortisation of assetscraigslist louisville kentucky free stuffbuy cashiers checketrade savings ratedifference between vat and sales taxdifference between covered and uncovered interest rate paritywww worcesterdeeds comsemi annual compoundingmississippi concealed carry permit online applicationtj maxx gift card check balancehow to become loan processorhousing grants in texasirs gov 1040ez instructionsunique tax deductionswhat caused the stock market crash in 1929letter to creditor to dispute debtdoes indiana tax social security benefitswhat happens if you overdraft your checking account