How to Fill Out a Lien Release Form
A lien is a claim that allows the holder to gain access to a property. If a lien is placed on your property, you can only freely sell it once the lien is removed. You, therefore, have to learn how to fill out a lien release form to help you remove the lien and regain full control of the property.
The lien release process, however, involves filling out long and complicated forms. You require an understanding of the terms used on the forms and learn how to fill out lien release forms correctly to have your lien removed. However, you can have the lien removed through
DoNotPay and avoid filling out the long forms.
DoNotPay can also help you learn what is a lien released on a car, remove a lien on your house, remove tax lien on a credit report, or how to sell a car with a lien. The automated DoNotPay platform helps you to remove liens on your home or car without going through the tedious process.
What Is a Lien?
A lien is a legal right or a claim on a property that has been used to secure a loan. A lien is fixed by a creditor to serve as a guarantee that the debtor will pay the agreed amount. If the debtor does not meet the obligations as agreed, the creditor has a right to seize the asset or dispose of it to recover the amount owed. The property owner cannot sell it without the consent of the lien holder. A lien can be consensual or statutory. A consensual lien is signed by a willing debtor, such as during a loan requisition. A statutory lien is created by law to enforce payment. There is also a judgment lien that is set by a court of law to enforce payment.
What Are the Types of Liens?
There are several types of liens, which include:
A bank lien is granted when a customer borrows a loan from a bank to purchase a property. The bank provides the funds against the purchased property. If the borrower does not repay the loan, the bank has a right to repossess the property.
A property lien is a legal claim that grants the holder access to a property as a guarantee that the owner of the property will repay the full amount. Property liens can only be approved by a county records office or state agency.
A car lien offers the car seller a right to the sold car until the total price of the car is cleared.
A tax lien is a statutory lien that allows tax authorizers to access to properties of a tax defaulter.
How to Remove a Lien
You can remove a property lien through any of the following methods:
- Clear the debt or obligation.
- If the lien was obtained through fraud or coercion, get a court order to quash it.
- File for bankruptcy under Chapter seven.
- Wait for the statute of limitation for the lien to expire naturally.
- Negotiate with the creditor to remove the lien.
How to Remove a Car Lien
You can remove a car lien by:
- Repaying the car purchase loan.
- Clearing the title loan.
- Paying the purchase loan.
- Paying any fines due to the city or state.
You can also remove a car lien by going to court, particularly for a mechanic's lien, asking the lien holder to remove it or wait for the statute of limitation to expire.
How to Remove a Tax Lien
You can remove a tax by:
- Paying the tax debt in full.
- Discharge of the property— shift the lien to another property.
- Go to court if you believe the lien is erroneous.
How to Get a Lien Release Form
Most states allow you to download the lien release forms either directly from the lender or through the DMV for car liens and IRS for a state tax lien. Once you get the form, your next step is to fill it out.
You can get DMV and IRS form and contacts here:
|IRS Form 12277||Fill Out Form|
|IRS Phone Assistance||866-699-4096|
|DMV Portal from Each State||DMV links|
|DMV Phone Numbers for Each State||Phone Number Page|
|DMV Mailing Address Each for State||Find Mailing Address|
How to Fill Out Lien Release Form
To fill out a lien release form, you need to understand the following terms:
- Name of Claimant - The claimant is the holder of the lien or the creditor.
- Customer - A customer is a borrower or the person who eventually makes the payment.
- Job location refers to the exact location of a mechanic's premises.
- Amount - to the dollar amount of the obligation.
- Claimant signature - The claimant's signature is the signature of the lien holder.
- Date of Signature - Calendar date when the release form is signed.
Filling out a lien release form is a tedious and time-consuming activity. Requesting the form, to understand the terms used in the form, could be a challenge for most people. If you find it difficult to fill out release liens paperwork, you can do it through the DoNotPay platform.
Remove a Lien with DoNotPay
The platform simplifies the process of lien release by condensing it to only three steps. With the DoNotPay platform, you do not need to fill out long and complicated forms. Here is how it works:
- 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 Works Across All Companies/Entities/Groups with The Click of a Button
The DoNotPay platform also helps you learn how to remove a state tax lien from a public record or find out whether anyone has placed a lien on you. To learn more on how to file lien release forms, join DoNotPay today.