Also known as: lienholder · lienors · lienholders
Written by attorneys · grounded in primary & secondary sources — see below
A person or entity that holds a lien on property to secure performance of an obligation. The lien gives the holder the right to enforce the interest against the property in the event of default.
Linden Bank holds a recorded junior mortgage on a commercial parcel after the owner defaults on a senior loan held by Lakeshore Industries. Lakeshore commences judicial foreclosure and joins Linden Bank as a necessary party. Linden Bank receives notice and participates in the proceeding to protect its interest in any surplus.
Lakeshore Industries holds a perfected security interest in equipment pledged by Liam Larson. After default, a senior secured party schedules a disposition. Lakeshore tenders full payment of the senior obligation and redeems the collateral before the sale occurs.
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Linden Logistics holds a junior lien on real property foreclosed by the senior mortgagee. The sale produces proceeds exceeding the senior debt. The court distributes the surplus first to Linden Logistics to satisfy its lien before any remainder reaches the mortgagor.
Linden Bank holds a perfected security interest in inventory but never notified the secured party of its identity. When the senior secured party disposes of the collateral without knowledge of the lien, it incurs no liability to Linden Bank for any procedural noncompliance.
Layla Lane holds a junior mortgage on residential property sold at foreclosure. Within the statutory period she tenders the sale price plus interest and costs. The purchaser's title remains subject to her redemption right until the period expires.
A municipality faces a judgment under section 1983. Legislative opponents expressed concern that an early version of the statute would allow judgment lienors to reach property held for public purposes. The final enactment addressed that exposure.
A lienor is any holder of a recorded lien on the property, including junior mortgagees and other secured parties. State statutes determine which lienors must be joined as necessary parties so that their interests can be addressed in the proceeding.
Yes. Any secured party or lienholder may redeem the collateral by tendering fulfillment of the secured obligations plus expenses before disposition occurs.
After satisfaction of the foreclosing lien, surplus is applied to junior liens in order of priority before any remainder reaches the mortgagor.
A lienor that has filed a financing statement and whose identity is known to the secured party must receive authenticated notification of disposition.
In jurisdictions that provide statutory redemption, junior lienholders are sometimes permitted to redeem after foreclosure by paying the sale price plus interest and costs within the statutory period.
…of Montgomery County. The investigation, which included interviews with the purchaser, the mortgage holder, and other lienholders of Lot 13T, as well as an examination of county land records, disclosed that petitioner, acting as settlement attorney, had defrauded Standard-Young Associates, the purchaser of Lot 13T.…