What is a lienholder of record?

A lienholder of record is an individual or entity that has a legal claim or interest in a property due to a loan or debt owed by the property owner. This designation is officially recorded in public records, establishing the lienholder's rights to the property in case of default on the loan. Lienholders can include banks, mortgage companies, or other financial institutions that have provided financing secured by the property. Their claim must be satisfied before the property can be sold or transferred free and clear of the lien.