Request and Remove a DMV Lien Release in 3 Steps
When you purchase a car and cannot pay the total cost with your funds, the Department of Motor Vehicle (DMV) will place a . Your lien will be recorded on your title, and DMV will then forward your title with the lien recorded to your lender. If you have registered the motor vehicle, you will receive the license plate and registration card.
Your lien should be released immediately once you have completely paid for your car. However, that is not commonly the case. Some people spend a tremendous amount of time struggling with frustrating customer service to remove their lien, not knowing there is an easier way to do so. At DoNotPay, we can help you quickly, easily, and conveniently.
What Is a DMV Lien?
The DMV is a government agency that administers driver licensing and motor vehicle registration. DMVs are mainly at the state or provincial levels and are present in the USA, Mexico, and Canada.
is a form of security interest that the DMV grants over your motor vehicle when bought on loan to secure debt payment. The lien acts as collateral so that your lender (also known as the lien holder) can repossess your motor vehicle if you cannot pay for it.
How to Get a DMV Lien Release
After paying off your vehicle loan, including any interest incurred, your lender should and must send you your title showing that your lien has been satisfied within three to ten business days. The lender should also notify the DMV that your loan has been paid in full. After receiving your title, you should remove the lien from DMV records as soon as possible. It would help if you also did either of the following:
- Exchange your title at the DMV for a clear title. This will require you to pay a stipulated fee.
- Retain the title that shows that your lien has been satisfied.
Whichever method you choose, ensure that the lien release is noted on the DMV records and you have obtained an updated copy of your title.
What to Do if You Do Not Obtain a Lien Release
Sometimes, your lender might fail to issue a lien release form within the stipulated time even after settling your debt in full. If this happens, you should follow the following procedure:
- Submit a request to your lender asking for proof that the loan has been paid. You can make the request through the DMV or directly to the lender.
- Contact or visit the DMV to ensure they received the loan satisfaction documents and have cleared the lien from your vehicle's title.
- Provide a copy of the vehicle's title that you are requesting lien release. After this, the DMV should provide you with a new title showing your lien has been cleared.
Can I Sell or Buy a Car With a DMV Lien?
If you have an existing DMV lien on your vehicle and want to transfer ownership to someone else, you must contact the lienholder first. If the lienholder agrees to this transfer, they should provide you with a title and a signed transfer of certification of lien information.
If the new buyer was not in the original sale contract and is going to assume the unpaid balance, the lienholder should record a new lien for the buyer. The new buyer will be mandated to pay the use tax and motor vehicle sale based on the unpaid loan and any additional charges to the seller.
Remove a DMV Lien With the Help of DoNotPay
At DoNotPay, we can help you with by amassing relevant information to your lien situation. We will send a letter to your lienholder or DMV requesting a renegotiation of the terms of your debt based on your needs. Additionally, we can fill out a Release of Lien form and send it to your creditor to sign, which will allow you to get the lien off your record. That way, you can move past your lien and secure your vehicle.
You have to follow the following procedure:
- Search for remove my lien on DoNotPay.
- Start our Remove My Lien product.
- Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.
DoNotPay Handles Other Lien-Related Concerns
is not the only thing that our product can help you with. You can also use it for the following:
What Else DoNotPay Can Do for You
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Sign up with DoNotPay right now and unlock a whole new world of possibilities when it comes to accomplishing tasks and finding quick resolutions to your legal conundrums.