What does it mean to have a lienholder on title?

Having a lienholder on a title means that a lender or creditor has a legal claim on the property until the debt associated with it is fully paid off. This claim is typically established through a loan or mortgage agreement, indicating that the lienholder has the right to take possession of the property if the borrower defaults on the loan. The lien is recorded on the title, making it public knowledge and affecting the owner's ability to sell or refinance the property without addressing the debt first.