How to Locate Car Liens

A lien against a car title means big trouble for a new owner.

Taking on a car that has an existing lien means that a loan using the car as collateral is still active and unpaid. The original owner may have used the car's title to obtain a personal loan or may have obtained a loan to buy the car itself. If the original owner defaults on the loan, the financial institution has the right to claim the car to make up its losses. It can do this even if you've paid for the car and had the title put in your name. Research any vehicle's title and lien history prior to purchasing it, especially from a private seller.

Things You'll Need

• Vehicle identification number
• Vehicle history report
• Lien release form

Instructions

1. Choose a respectable online title search engine (see References) to purchase a Vehicle History Report (VHR). The history report identifies existing liens as well as the car's physical history and how many owners it's had. A VHR costs between $25 and $45 as of 2010.

2. Type the vehicle's VIN into the search engine and pay for your VHR with a credit card online. The VIN is located on the title and registration forms as well as the label on the lower inside of the driver-side door. If any liens have been levied against your car, they will be listed on the VHR.

3. Visit your local Department of Motor Vehicles or Motor Vehicle Administration to request a Title Abstract Report, which will give you information about the current lien against the title. The associated fees and applications to fill out vary from state to state.

4. Visit your state's Department of Motor Vehicle's website to request a title history check online. Most states allow you to request a title history check over the phone and through the mail as well. Provide the VIN, vehicle make and vehicle year.

5. Get a lien release from the financial institution if the loan was paid in full by the previous owner but not released from the title of the vehicle. The owner needs to request the lien release. If the institution has since gone out of business, have the owner apply to the FDIC (see Resources) for a lien release. Providing proof of payment will expedite the process.

References

• The Unofficial DMV Guide: What a VHR Reveals
• CARFAX: CARFAX Vehicle History Reports Order Form
• FDIC: Obtaining a Lien Release
• New York State Department of Motor Vehicles: DMV Records
• Ohio.gov: Vehicle Titling-Frequently Asked Questions

Resources

• FDIC: Frequently Asked Questions About Lien Releases
• Kelley Blue Book: New Cars, Used Cars, Blue Book Values & Car Prices