What is a Lien Release on a Car
Nobody likes having a lien placed on their property. The chance of losing something you own can be a terrifying thought, and may even damage your credit. If you make your payments on time though, the creditor likely won't take your property away from you. And, if you pay your debt in full, you can get a lien release on your car. What is a lien release on a car though?
Fortunately, DoNotPay can help answer any questions you have about a lien, whether the lien is on your car, home, or anything else. They can even help you get a lien release by crafting a letter to send to your creditor. DoNotPay is going to help you through this!
What Does It Mean to Have a Lien on Your Car?
To have a lien on your car typically means you financed the car in some way at the time of purchase. This is usually what people do, as most people don't have thousands of dollars on hand at one time unless they've been saving money for a while. When you have a lien on your car, the bank or other creditor you borrowed the money from technically owns the car until the debt is completely paid off. So, if you don't make the payments on time, your car will be repossessed by the bank. It's simply so the bank/creditor doesn't have to be too worried about losing money if you don't make your payments.
What Is a Lien Release?
When you get a lien release, it means the debt has been paid off and the creditor no longer owns your car. For a lien release to be official, the creditor has to file a release of lien with the government office holding the lien paperwork, canceling their claim to your vehicle. A lien may expire on its own eventually, but some states do require a lien release form to be submitted.
Does a Car Lien Hurt My Credit Score?
If you make your payments on time, then no, a car lien won't hurt your credit score. In the case of a car lien, it could increase your credit score over time by showing you have a good payment history. However, if you don't make the payments, then your credit score can take a big hit, especially if the car is repossessed.
How to Get a Lien Release on a Car
Obtaining a lien release can be difficult if the creditor is rather unresponsive. They'll have to fill out the lien release form and submit it on your behalf because they're the ones you previously owed a debt to.
To get a lien release for your car:
- Finish paying the amount owed on your car, as well as any interest. The lender/creditor should then file a lien release with the local government or the government office that's currently in possession of the lien paperwork. The lender will also notify the DMV that the payment has been received in full, and you should receive the release after three business days.
- If you don't receive the lien release, contact your lender, or the DMV, and ask for proof the loan has been paid in full.
- Verify the DMV has received the document proving the loan has been paid off, and that any lien on the vehicle has been removed.
- You may also be asked to provide a copy of the title for your car to receive the lien release.
You can contact DMV here:
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Get a Lien Release on Your Car With the Help of DoNotPay
Requesting a lien release for your car can be frustrating if the lender didn't send it to you immediately after the loan was paid off, but DoNotPay can make it much easier for you. DoNotPay can help you craft a letter to send to your creditor, or even fill out a Release of Lien form and send it off to be signed. They will do whatever they can to help you secure your property.
- 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 Can Answer All Your Lien-Related Questions
Sometimes, we have more questions than answers when it comes to liens, but DoNotPay can help you find the answers you need. They can answer just about any question you have about the problem, including:
- How to fill out a lien release form
- How to find out if there's a lien against you
- How to find out if there's a lien on your house
- How to remove a state tax lien from your public record
- How to remove a lien on your property
- How to sell a car with a lien
And anything else you can think of!
What Else Can DoNotPay Do?
DoNotPay isn't limited to liens held against you; they can help you with almost any other problem you have. Legal problems, everyday issues, and simply finding ways to make a little extra cash are things they can give you advice on or take care of completely. Aside from helping you obtain a lien release on your car, DoNotPay can help you:
- Get a release of liability
- Reduce property taxes
- Get a clean credit report
- Take people or companies to small claims court
There's almost nothing DoNotPay can't do, so don't spend all your time trying to find a solution to your problems on your own. Join DoNotPay today to save time and money!