what is a lien holder

A lienholder is a person or institution that holds a legal interest in a property, such as a car, until the loan on the property is paid off in full. In the case of a car, the lienholder is typically the financial institution that provided the loan to purchase the car. The lienholder holds the cars title and is considered the legal owner of the vehicle until the loan is paid off. The lien protects the lender and allows them to repossess the car if the borrower stops making payments. Once the loan is fully repaid, the lienholder releases the lien and the borrower becomes the legal owner of the car. It's important to note that the lienholder's name may be printed on the car's title to protect their financial interests.