How to Clear an Auto Title
An auto title documents all lien holders who have ties to the ownership of a vehicle. When a vehicle is financed, the title of the automobile is held by a bank or the loan company. Any lien holders will be listed on the title as financial obligations, and this gives them legal claims to the vehicle for as long as the liens are present. Clearing an auto title removes all lien holders and gives the title holder of the vehicle clear ownership. Removing lien holders can be completed with the proper documentation.
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Instructions
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Ensure that all lien holders have valid claims on the vehicle. Contact the bank or loan company and verify the payoff amount. The payoff amount changes over time due to interest accrued and any fees, so get a pay date that covers sufficient time to make the payment.
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Submit payment to the loan company or bank with a payment method that can be tracked. Ensure a receipt is provided to make sure that the payment cannot be disputed. Contact the lien holder to ensure the payment has been posted to the balance and the loan has been satisfied.
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Take the letter sent from the lien holder and the title that states subject to lien to your local department of motor vehicles office. If a letter is not received from the lien holder, ensure that the full balance have been paid on the vehicle. The DMV will provide a clear title that states that the vehicle owner is the sole holder of this vehicle.
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Tips & Warnings
Document all payments made to lien holder
Ensure a vehicle title is cleared before trying to sell it.
References
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