3 Easy Steps to Filing a Release of Lien Form In New Mexico

A lien is a legal way for creditors to ensure that they are covered if a borrower fails to repay a loan on a high-value item such as a car. When a creditor places a lien on your property, that asset immediately becomes collateral, meaning that if you don't repay your loan, the lender can seize it and auction it off to recover the money.

Getting a can be very frustrating. Luckily DoNotPay can help. With DoNotPay, you can leverage both the law and the interests to get the lien form.

What Is a Lien

A lien is a stake against any or all of your properties due to a debt that the creditor alleges you failed to pay. A lien serves the purpose of allowing a claimant or creditor to take the property the court sees fit as appropriate collateral and to sell it or auction it off to repay the unpaid claims.

What Are the Types of Liens

There are about five common liens, these are:

Judgment liens
Bank liens
Real estate liens
Mechanic liens
Car liens

Judgment Lien	A judgment lien occurs due to a lawsuit. A judgment lien will help the plaintiff get paid after the defendant's assets are liquidated.
Bank Liens	In a bank lien, the bank, which is the creditor in this situation, will put a lien whenever you take out a loan to buy an asset. For example, the seller will be paid using the borrowed funds you got from the bank. If you buy a car, the bank will place a lien on the vehicle. Failure to repay the bank loan will result in the bank executing its lien and freezing your car auctioning it off and repaying the loan.
Real Estate or Property Liens	A property lien is a legal right that a creditor has to seize and sell any real estate property if the borrowing party fails to fulfill their end of the contract. Some real estate liens are usually put in place automatically. An excellent example of a real estate or property lien is a mortgage. When a party gets money from a bank to buy their house, the bank usually places an automatic lien in the form of a mortgage until the borrowing party pays off the loan.
Mechanics Lien	A mechanic's lien is usually attached to real property such as a car. If you failed to pay the mechanic or contractor for any services they've offered you, they are entitled to get paid through a mechanic's lien.
Car Liens	The creditor can seize your vehicle if you fail to pay the loan. This type of lien is usually a creditor's way of ensuring that they are still covered if you fail to pay your loan.

How to Remove a Lien

There are many ways to remove a lien, including:

Paying the full amount you owe to the creditor so that they can give you a lien release from New Mexico.

Ask the lender directly to remove the lien. A lender will always agree to remove the lien once you've paid your amount in full.
Applying for a court mandate that directs the lienholder or lender to remove the lien. The lender will only remove a lien once you've paid your amount in full.

What Does a Notice of Transfer and Release of Liability Do?

A Notice of Transfer and Release of Liability is a form that one has to fill out when they want to sell their car. This document is usually helpful in letting the DMV know that you are no longer the vehicle owner, which also comes in handy when you wish to inform the government that you no longer have any responsibility for legal issues that the car may incur.

Filing a Notice of Transfer and Release of Liability is crucial as it helps you finalize the sale of a vehicle and prevents you from getting any legal violations such as traffic and parking violations that the new owner of the vehicle may incur.

How To Get A Lien Release Form New Mexico

A release of lien form New Mexico is used to cancel a lien that has already been filed. This type of form is often used to release a lien claim after a claimant gets their payments. However, it might also be released based on legal controversies, the expiry date, or settlements.

To get your New Mexico lien release form, you need to:

Download the New Mexico Lien release form.
Fill in the form by offering your contact information, including your name, address, phone number, and fax.
Submit and wait.

Remove a Lien With DoNotPay

DoNotPay will amass all the necessary information to help your lien situation. We will also send a letter to your creditor asking them to renegotiate the terms of your debt based on your income and other needs.

We can also help you get a release of lien form New Mexico and send it to your creditor to sign, letting you put all the lien issues behind you, secure your asset, and have peace of mind. Here's 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.