How to Remove a Lien From a Car Title
Satisfying a lien on a car title can be a daunting task, if not approached in the correct manner. Oftentimes the paper trail is not a straight and narrow path, leaving the owner of the vehicle in question wondering which way to turn. There are easy-to-follow steps that may help take some of the confusion out of removing a lien from your car title.
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Instructions
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Understand the concept of a lien. A lien is the right to retain lawful possession of someone else's property until the owner of the property fulfills a legal obligation to the lien holder. The obligation is usually a financial one where the lien holder has vested interest in the property. This can be someone like an auto lender such as a bank, a private party seller who sold the vehicle to another, or a mechanic who performed repairs on the vehicle and has yet to be paid for his work.
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Review the car title to determine the name of the lien holder. This information is usually located on the front of the title itself, near the bottom. It is possible for a car to have more than one lien placed against it by more than one creditor so be sure to note the number of liens and lien holders when collecting the information from the title.
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Locate the contact information for each lien holder. It could be a bank, a finance company, an auto dealership, mechanic, or a private party. Contact them to determine the terms for satisfying the lien. Ask for whatever proof they have showing that they are, in fact, owed a certain amount of money. If you are unable to locate the lien holders, contact the county clerk's office in the county where the car is registered. The original lien was likely filed there.
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Pay off the amount owed to satisfy the conditions of the lien. Get a notarized statement from the lien holder stating that the conditions of the lien have been satisfied.
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Contact your local Department of Motor Vehicles and inquire about the forms needed to complete the lien removal and to generate a new title free and clear of liens or lien holder names. Complete and return those forms along with a copy of the notarized statement from the lien holder.
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Forward a copy of the notarized statement to your insurance company so it can remove any special or extra lien holder coverage or stipulations from your policy.
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Tips & Warnings
Always ask for as much proof possible showing that the debt against the vehicle is true and valid, and that it has not been paid.
Make and keep several copies of all of these documents, including the title.
