If you are looking for ways to remove a lien on a vehicle title, you will find out that the process differs from state to state. It usually includes filling out paperwork by using online forms or hard copies, paying all fees, and obtaining a new car title. For example, some electronic programs are available in the cities, while others rely on traditional processes.
So if there is a lien on your car, it could be difficult or even impossible to sell it, according to Junkcarsus. So ? Let’s clarify first what is a car lien and see what actions you should take to clean your title.
So what exactly does a car lien refer to?
Lien on a vehicle title is the legal claim granted to the lender or holder on a car until it is fully paid off. It serves as a form of security for a loan or debt. It gives the holder the right to retake the transport in case the borrower fails to make the necessary payments. Additionally, a car lien may include unpaid repairs when a person is using the vehicle as a guarantee to obtain a loan or, for example, when you did not pay parking tickets and any other fines.
So the lien holder has legal ownership of an item until the debt is completely paid off. To release the car, first of all, you have to pay the debt, and the ownership will be transferred to you (borrower). So the lien can impact the ability to sell, junk, or transfer ownership of the vehicle.
As well you can face some unusual cases or uncommon situations, for example:
- when your lienholder fails to respond to your inquiries
- when you purchase a car in one state but have a title loan in another
- other scenarios that may create a permanent hold on it, etc.
In any case, getting rid of a car that has a lien can be tricky. The holder will still maintain a legal claim on it. Dealing with a car that has a lien can be frustrating, but such companies as Junkcarsus can offer legal solutions for those looking to dispose of such vehicles.
Checking for liens on a vehicle before buying or selling it
In case when you decide to buy a car, it is important to check and verify if there are any liens on a used car. Before purchasing, whether you buy it privately or through a dealer, do research by using the official government website. You can search by vehicle identification number (VIN), and you have the right to obtain an auto history report.
Actually, by law, registered car dealers are obligated to ensure that liens are removed from the used cars they sell. Whether you want to junkyard a car, sell it, or buy it, it is essential to make a lien search. If you find that auto has a lien, you have to remove it before registration with your province or state. Now let’s check options on how you can potentially remove a lien in your state.
Main ways of getting rid of a lien on your vehicle title
Basically, as we mentioned above, when you have paid all the debts, you can release your car. On some occasions, the title may not be sent to you straightly. Instead, it could be sent to a holder or bank that holds the title until you make your final payment. The title will include your name and address, as well as the vehicle information. Also, check if the holder made an update to the state records and removed their name from the title. Other crucial points to take into account:
1. Repaying the holder/lender
So if you already own a car or want to get rid of a car with a lien by following the legal rules, you have to pay all debts. As the car is not entirely yours, and therefore, you cannot sell it straight as it’s partly someone else’s property.
Since the car is not solely yours, selling or junking it with a lien is illegal. In other words, it looks like disposing of someone else’s property. If you owe money to the lender, you have to repossess the auto. By paying off what you own, including fees and any taxes, you can release a car. Once you solve this issue, you can obtain a new title in your name from the DMV office.
2. Paying off all the bills
If you plan to sell or junk a car with a lien, you must first repay all bills you own. Starting from the repair debt to parking tickets, etc. For example, if you are unable to pay for the mechanic lien or repairs, the holder or repair professional may file a lien to secure payment.
Once you have fully repaid the bills, you should request the mechanic to remove the lien from the title at the DMV. The whole process may take a minimum of 5 business days.
3. Facing unusual scenarios
In case you misplace or lose the documents after you have paid all debts and received a new title, you will need to obtain a duplicate and register it with the state where you are currently making records.
For example, sometimes, your title record can still show the lien even if you have paid it off simply because the state’s bank did not inform the authorities. To remove it, you will need to take certain steps or ask for a professional’s help here.
4. Selling it privately
By the way, you can also sell it privately. So if you cannot find a solution on how to sell or dispose of an auto (for example, if a holder does not answer the inquiries), an alternative is to sell it privately. However, this can be a complicated process as the car is not entirely under your ownership.
You may sell the car if the selling price is higher than the amount you owe on your car with a lien. The lender may allow the sale if it enables you to repay the loan.
Alternatively, you can attempt to sell the car for cash by selling its parts. This will require coordination between you (borrower), the buyer, the holder, and possibly the DMV office, and third parties. Note that selling an auto to a private buyer without removing a lien is illegal.
Final thoughts
Summing up, you have to do your own research according to the state you are staying in; you can find a comprehensive range of information on lien’s releases according to the particular case. It is essential to see how to obtain them in your state. When filling out the different forms, take into account that they vary from state to state.
If you prefer to have your own assistance in the deal of obtaining a lien release, you can find professionals online who would be happy to help. Check their website and feedback to make sure it is a reliable company. The process may sound costly and time-consuming. So in most cases, people use the services of experts in the niche that can simplify all of the steps.