Easily Secure a Vehicle Lien Release with This Sample Letter
If you have a title loan on your vehicle or you are financing it then your title likely has a lienholder listed on it. When the lien obligation has been fulfilled then the lienholder may send you a We are going to discuss what one looks like and what should be included so that it can be used to remove the lien from your title.
If you have fulfilled your lien obligation but have not yet received your vehicle lien release letter the products from DoNotPay may be able to help you to get the letter and have your lienholder removed from your title. Here are more articles from the remove a lien product series.
- How you can remove a state tax lien from the public record?
- How to fill out your lien release form.
- What is a lien release on a car?
- How do I find out if I have a lien against me?
- Selling a car with a lien.
- Is there a lien on your house? Look it up!
- There is a tax lien on your credit report, now what?
- How to remove a lien on the property.
What Is a Lien?
A lien is a legally binding contract that allows the lienholder to take possession and ownership of property when the property owner fails to pay their agreed amount. Once the loan or financing has been paid back in full the lienholder's name is removed from the title and it belongs to the owner free and clear.
Types of Vehicle Liens
There may be a lien on your car for several different reasons, but not all of them are that bad. Here are a few different types of liens on a vehicle.
|Financing Liens||This is one of the most common liens that’s mostly tied to your vehicle. This lien will allow you to buy the car that you cannot afford, but you’ll be put under a financing lien.|
|Child Support Liens||This lien will ensure that both parents would contribute equally. The amount of a Child Support Lien will depend on the court’s order. Rules regarding these liens vary per state.|
|Mechanic’s Liens||This lien allows mechanics to put a lien on your car when you were unable to pay their services|
What Is a Vehicle Lien Release Letter?
When the lien obligation has been fulfilled then the lienholder will send a . This letter must be signed by the lienholder in front of a notary who must also sign and provide their credentials and stamp.
Does a Vehicle Lien Affect Ownership?
When a lien is placed on a vehicle the vehicle is not the property of the "owner" until the lien has been paid in full. If you default on the loan or contract agreement then the vehicle can become the property of the lien holder.
Does a Vehicle Lien Affect Insurance?
Most lenders will require that you carry liability insurance as well as comprehensive insurance so that their investment is secure. This enables the lien holder to be able to recover the value of the property if the property is not recovered.
Does a Lien Affect Credit Score?
A consensual lien gets paid back and will appear as a loan in good standing if payments are made. A statutory lien or a judgment can bring your credit score down and is a derogatory mark on your credit.
Does a Lien Affect Buying and Selling?
Some states will not let a title be transferred to a new owner if there is a lien on the title. The vehicle cannot be fully owned until the lien has been satisfied. Until the lien is removed the lien holder has a claim on the property or vehicle listed.
What Must Be Included in a Vehicle Lien Release Letter?
A lien holder will send a that can be used at the DMV to have the lien removed from the title for you.
- The lienholder's full name
- The title number- listed on the title
- The borrower's full name
- The amount- numbered dollar amount borrowed or financed
- Vehicle identification number- on the title and the vehicle
- The year, make, and model of the vehicle
- Lienholder's signature, witnessed by a notary
- Notary's signature
- Date signed
- County and state where it was signed
- Commission expiration of the notary and notary seal or stamp
Example Vehicle Lien Release Letter
[Lienholder Address] [Date]
To whom it may concern:
The lien obligation of $________ has been paid in full by the Property Owner. The lienholder hereby releases vehicle year, make, and model with title number ______ and VIN ________ removing the lienholder's claim on the property.
[Lienholder's Signature] [Date]
[Notary Signature] [Date] [County] [State] [Commission] [Expiration and Notary Stamp]
Let DoNotPay Remove Your Vehicle Lien For You
If you have paid off your lien but you have not received your lien release letter you should let DoNotPay handle the matter. You do not need to waste time searching for information and writing letters when you let DoNotPay and remove a lien product work for you.
- 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.
That's all there is to it, DoNotPay generates the letter for you to request your vehicle lien release letter from your lienholder.
Other Things DoNotPay Can Do For You
If you can not get enough of the time and money you saved removing your vehicle's loan then you will want to check out the other great products brought to you by DoNotPay. Here are a few more to check out.
- Clean your credit report quickly.
- Reach customer service successfully in a flash.
- Close an old unused bank account.
- Reduce the amount of property tax you have to pay.
- Release of liability forms to fill out.
- Small claims court has never been so easy.
- Have your credit limit increased in a matter of days.
- If you need help to get your bills paid, DoNotPay has the resources to help with that too.