lienholders

A lienholder is a person or institution that holds a lien on a property or asset as security for a debt or obligation. A lien is a legal claim that allows the lienholder to be paid from the value of the asset if the debtor defaults. Liens can arise by contract, statute, or court judgment and may apply to real property, personal property, or both.

Common types include mortgage liens or deeds of trust on real estate; mechanic's or materialmen's liens for construction or repair work; tax liens; judgment liens; and security interests created under commercial frameworks such as the Uniform Commercial Code (UCC) for personal property. Some liens are consensual security interests tied to a loan, while others are nonconsensual statutory or judicial claims.

Creation and perfection typically involve filing or recording. Real property liens are created by recording documents with public offices (for example, mortgages or notices of lien). Security interests in personal property arise from a security agreement and are perfected by filing a financing statement or taking possession, depending on jurisdiction and asset type.

Priority among liens generally follows the order of perfection or recording, subject to exceptions. Certain liens, such as certain tax liens or government assessments, often have special priority ahead of other claims. When a debtor defaults, a lienholder may enforce the lien through collection actions, foreclosure or sale of the collateral, or other remedies provided by law, often after notice and procedures designed to protect the debtor’s rights.

Debtors and other creditors may challenge improper liens, and liens may be released or discharged upon payment, settlement, or court order.