If you bought the car from the 1st owner, then he/she probably fiannced it. The creditor, e.g., a bank that provided the loan, was the lien-holder of the car before the 1st owner paid off the loan. Once the loan was paid off, the creditor sent the title (with the word "lien" on it) to the 1st owner, who at that time became the legal owner of the car. He should have gotten a clean title before selling it to you, but it is no big deal.