Do you have a lien on your car title or need to obtain a vehicle lien release? The terms lien title and vehicle lien release may seem to have negative connotations, but a lien on a vehicle title is actually extremely common. If you’ve purchased a vehicle with the assistance of a loan from a lender, that lender places a lien on your title until the loan has been paid off in its entirety. A lien is a claim on a property for the security of payment. When a lender loans a borrower (you) money to purchase a vehicle, they want to make sure that they are paid back plus interest. Your lender, also known as your lienholder, will remain printed on the front of your vehicle title until the loan is paid off. A lien on a vehicle title is a cloud on the title that places a hold on the ownership.
Most states are non-title-holding states, meaning that the lienholder will hold the title until the loan is paid off. On the other hand, there are a handful of states that are title-holding states, meaning the title is sent to the vehicle owner with the lienholder and the owner holds the title. Once the loan is paid off on your vehicle, your lender will stamp the title as paid and mail it off to you. However, just because the loan has been paid doesn’t mean that the lender has released the lien. Oftentimes, it is up to you to go through the lien release process and notify the DMV of the satisfied payment.
The easiest way to release a lien from your vehicle title is to contact your lienholder directly and request they email or fax a lien release to you. Your lienholder is the only authorized agent to release the lien from the title. If your lienholder doesn’t reply within 24 hours of your initial request, try contacting them via mail. Research the address of your lienholder along with any other address locations you can find. By certified mail, send your lienholder your state’s lien release request form along with a letter of non-interest. A letter of non-interest is a document that states the lienholder no longer has any interest in pursuing the unpaid loan amount on the vehicle and can be sufficient to release the lien. Make sure to do most of the work before sending out the lien release request and letter of non-interest. Make sure that all portions of the forms are completed in their entirety and notarized if needed. Your lienholder is more likely to return the forms quickly and without issue, if you provide them with the already completed forms only in need of a signature. We recommend including a return envelope with a stamp for added convenience.
When completing a lien release request, make sure that all of the information is correct. Submission of a fraudulent lien release is a felony in most states. For your peace of mind, we can help to professionally prepare your lien release request and contact your lienholder.
If your loan was charged off, meaning the lender wrote off the remainder of your loan payment, this takes the loan out of the financial system. The lender can no longer use it as an asset and no longer have rights to the remaining balance. However, this doesn’t take the lienholder off of the title. If your loan was charged off, you still need to obtain a lien release from your lender.
If you’ve purchased a vehicle with a lien, you should mitigate the lien with the lender. Lien mitigation is when the new owner disputes the lien with the lender. The new owner asks the lender to remove it because they were not the original borrower and they have no obligations to continue paying a loan that is not theirs.
Arizona, Kentucky, Maryland, Michigan, Minnesota, New York, Oklahoma, South Dakota, and Wisconsin
If you’re buying or selling a car, it’s important to know how to properly transfer a car title from buyer to seller. Not only is this important for the security of the transaction, but if done improperly, the DMV will reject your application for a title transfer. A car title, also known as a vehicle title or certificate of title, is the most important document for a vehicle as it assigns legal ownership. The name of the individual on the front of the car title is the only legal owner of the car in the eyes of the DMV. The title transfer process is meticulous and does not provide any room for error. This article discusses the steps necessary to transfer a car title from buyer to seller, and what you can do if the original title is lost.
The first step to transferring a car title is to obtain the original title from the seller. The seller should also be the prior owner or the prior owner should be present to sign the transfer. The front of the car title should be very detailed and should feature watermarks, background patterns, and scrollwork that are difficult to recreate. The front of the car title is where the current title holder’s name is located, make sure that the person signing over the title to you is the person listed on the car title document. The back of the car title is a form that assigns ownership of the title. To transfer ownership, the prior owner must complete and sign the back of the car title document and give it to you.
The most direct way to obtain a car title is to have it signed over to you by the prior owner. Oftentimes this document is required to be notarized, but not all states have this requirement. The notary verifies that the person transferring the title is the actual printed titleholder and not just someone trying to sell you a car that doesn’t belong to them.
As you and the prior owner are completing the assignment of title, be extremely careful to not make any errors or scratch anything out. Any stray marks, white out, scratch out, or damage to the document will invalidate the entire title. If the title is damaged in any way from a small rip on the corner to water damage, the title is invalid and you will have to proceed with an alternate method of title recovery.
Once you have the previous title signed over to you by the prior owner, take that document to the DMV as soon as possible along with your government-issued photo ID. Most states require that you apply for a title within 30 days of purchasing the vehicle or a late fee will be imposed. At the DMV, you’ll complete an application for title, if your state does not allow for the assignment of title to double as an application. All states require a title fee and most states will require the applicant to pay sales tax on the purchase price or book value of the vehicle. Certain vehicles that are brought from out-of-state may require an additional VIN inspection. Make sure to check the requirements in your state before visiting the DMV.
If you don’t have the prior title or you lost the original title before you were able to take it to the DMV, there still may be methods available to obtain a new title in your name.
This method of title recovery involves contacting the prior owner and asking them to obtain a duplicate title. Remember, if you were not the last printed owner on the title document, you cannot get a duplicate title even if the prior owner assigned you as the new owner, without that original document the duplicate process will not work. If the prior owner obtains a duplicate title, they can then sign over the title to your name again.
A bonded title requires the applicant to obtain a surety bond to back up their claim of ownership. The surety bond is intended to protect the DMV in the instance that there is a dispute of ownership over the vehicle after the bonded title is issued.
If you have a vehicle that is 15 years old or older, you may be able to obtain a title using an out-of-state title method in Vermont. The Vermont title loophole, or Vermont registration, is a process used by non-residents to obtain a title for a vehicle that can be transferred into their state. Vermont is the only state that allows for this and it only applies to vehicles 15 years old or older.
The most direct and secure way to transfer a car title is by having the prior owner sign the title over to you directly. Once you have the signed title transfer in hand, make sure to take that to the DMV as soon as possible to avoid late fees, lost documents, or other avoidable issues. If you lost the original title, it’s damaged, or you never received it in the first place, there are other options available for title recovery. If it’s your car, you deserve a title in your name,
What happens to a car title when the owner dies? It’s a common question for many individuals who aren’t sure what to do with their deceased loved one’s car. Almost every state has a process to transfer the title from a deceased owner. While all states are different, there are general similarities that can help you get started on your deceased owner title transfer.
Before proceeding with the title transfer from the deceased owner, you must first check if the title has survivorship. If the title has survivorship, then the title is automatically transferred into the survivor’s name. If there is no survivorship, will the estate be probated? Meaning, has the deceased owner left a will that will go through the court system for the vehicle? If the answer is yes to either of these questions, the transfer process may be more streamlined and defined in the official documents or will.
If there is no survivorship and there is no will or probate needed, then you will have to seek permission from all other legal heirs (other family members) before transferring ownership of any property into your name.
In many cases, the vehicle does not have survivorship and the estate will not be probated. In this case, most states have a process to obtain a title from a deceased owner. To apply for a new title from a deceased owner, you’ll typically need the following items:
The inheritance affidavit is a document needed when transferring ownership of a vehicle from a deceased owner. This document outlines the ownership of the vehicle as assigned by all of the surviving heirs of the property/vehicle. In order to transfer ownership, all heirs must sign this document and it must be notarized.
If the vehicle previously had a lien, you will need to obtain a vehicle lien release prior to transferring the title.
Not all states require the death certificate to be included in the application for title. However, be sure to check your state’s requirements prior to submitting your application.
The DMV title transfer process can be confusing and tedious, especially when you’re also dealing with the loss of a loved one. Remember as you are caring for your deceased loved one’s property you also remember to care for yourself. If there is an estate or survivorship, consider consulting or hiring a lawyer to assist you in this process. We always recommend getting good legal advice when transferring a title from a deceased owner, the DMV cannot provide legal advice.
Abandoned vehicles are vehicles that have been left on private property by their owner with no further intentions to collect or dispose of the vehicle. The abandoned vehicle process varies by state, but all abandoned vehicle processes have similar legal requirements. Additionally, in some cases, the abandoned vehicle process may not provide the ideal outcome.
If you are a private property owner who has been left with an abandoned vehicle on your property, it can be incredibly stressful and overwhelming to have to deal with the necessary steps to get rid of the vehicle. This blog discusses general steps to take if you have discovered an abandoned vehicle on your property and what other options for title recovery may be available.
Each of the 50 US states has a different process to file for an abandoned vehicle. With each state having different legal requirements, it’s important to contact an attorney that specializes in vehicle title laws in your state. This article is not legal advice, we recommend speaking to an attorney prior to beginning your abandoned vehicle process.
What are your intentions with this abandoned vehicle? Abandoned vehicles aren’t necessarily a “finder’s keepers” type of situation. In most states, if you file an abandoned vehicle, you’re intending for the vehicle to be towed and disposed of. Many abandoned vehicle title processes do not allow for the property owner to take possession of the vehicle. If you’re planning to keep the vehicle and possess it or sell it, consider other title options such as a bonded title or a court-ordered title.
The Driver’s Privacy Protection Act (DPPA) is a federal statute that protects driver information from being public records. According to the DPPA, to obtain personal driving information, an individual or organization must submit an official form to the state DMV requesting specific information. To obtain information protected by the DPPA, you must disclose your reasoning in your official request. Just because the DMV receives your official request form doesn’t mean they will give out the information. The information you obtain from the DPPA request can help you locate the prior owner and will assist in the title or removal process. Not all states allow for this information to be requested. Arkansas and Wyoming do not allow for DPPA information to be provided about other individuals, in these states you can only request your own driving and vehicle records.
In some states, the property owner must sign an affidavit that states the vehicle has not moved from the original location in which it was abandoned. By moving the vehicle, you may be inadvertently invalidating the abandoned vehicle process.
In certain cases after all other methods of title recovery have been exhausted or if your state requires it, you may need to have a judgment against the prior owner of the vehicle. Certain businesses such as storage and towing companies may be able to charge storage fees for the abandoned vehicle, but private property owners are not permitted to do the same. Private property owners can use the court process to obtain a judgment against the owner for abandoning the vehicle on their property.
The abandoned vehicle process is a complicated legal process. If you are a private property owner with an abandoned vehicle of any kind whether it’s a truck, car, motorhome, or another type of vehicle, you may be able to file for an abandoned vehicle and have it removed from your property. In most states, an abandoned vehicle title is not a regular method of obtaining a title. When choosing your method of title recovery, first decide the desired outcome of the situation. Do you want to keep the vehicle? If so, try a bonded title or court-ordered title. Do you want to dispose of the vehicle? An abandoned title process may be right for you. Always seek professional or legal advice before proceeding with your title recovery method.
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A bonded title is a type of vehicle title that is acquired using a surety bond when the vehicle owner does not have valid prior title documents or those documents have been damaged. Typically, a vehicle title is signed over to the new owner by the prior titleholder when purchasing the vehicle. Unfortunately, not all sellers deliver on their promise of a title. If you live in Texas and you are trying to obtain a new vehicle title without valid prior title documents, you may be able to obtain a bonded title.
The following reasons may render your vehicle ineligible for a Texas bonded title:
Vehicles that have a lien or security interest on the title are not eligible for a Texas bonded title unless one of the following conditions is met:
Vehicles that fall into one of these categories are not eligible for a Texas bonded title. To check if your vehicle is non-repairable, junk, or salvage, perform a VIN check through the NMVTIS database. Incomplete cars are vehicles that are inoperable or disassembled. Vehicles that are disassembled or incomplete are not eligible for a Texas bonded title.
If your vehicle is eligible for a bonded title, the next step is to begin the application process. Complete the Bonded Title Application or Tax Collector Hearing Statement of Fact (VTR-130-SOF) with the following information:
This section of the Texas bonded title application is very important. Why are you requesting a bonded title? Why don’t you have the prior title? Oftentimes the answer is simply “I bought the vehicle online and never got a title” or “I lost the title document”. The Texas DMV wants to make sure that you’re requesting a bonded title in good faith.
If your vehicle meets the criteria described on page two of the bonded title application as a rebuilt or newly assembled vehicle, you may be required to submit additional documents. Be sure to review the instructions prior to submitting to the DMV. Once completing this application, submit it to the Texas DMV along with a processing fee of $15.00 and any evidence of ownership you have such as a bill of sale or canceled check.
Texas has a specific method to determine the value of your vehicle. Using the Standard Presumptive Value (SPV) on the Texas DMV website, input your vehicle’s information to obtain the SPV. If your vehicle’s value cannot be determined through the SPV, your vehicle will need to receive an appraisal from a licensed dealer or insurance adjuster.
Once your application has been approved and you’d like to proceed with the bonded title, you can purchase your surety bond. The amount for the bond will be determined by your vehicle’s SPV value or appraisal value. To purchase your surety bond, visit a surety bond agency such as ProBonds.com. The surety bond amount for a Texas title bond is 1.5x the value of the vehicle. However, this doesn’t mean you’ll have to pay thousands of dollars just to obtain a surety bond. Most surety bonds cost around $100-$150 to purchase, the surety bond company backs the DMV with the remainder of the amount. The reason for the surety bond is to protect the DMV in the situation where there is a discrepancy of ownership over your vehicle.
After being approved for a Texas bonded title and purchasing your surety bond at 1.5x the value of the vehicle, gather all of the documents and submit them to the county tax assessor-collector’s office for the application to be processed or a hearing to be held. Include the Application for Texas Title and/or Registration (130-U), both pages of the Bonded Title Application (VTR-130-SOF), Form VTR 130ND issued to you by the Texas DMV stating the amount of your bond, and the Certificate of Title Surety Bond (VTR-130-SB). If your vehicle requires an inspection or VIN certification, be sure to review and include those necessary documents as well.
A Texas bonded title is a great alternative when vehicle owners are unable to provide prior title documents. This article is not a full list of instructions, if your vehicle meets rebuilt, kit, or otherwise reconstructed criteria, there may be additional steps you need to take. Before proceeding with a Texas bonded title, make sure to contact your local Texas DMV to determine eligibility.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for your Texas bonded title or any other title recovery method provided.
Looking for a quote for your title bond? Get one at ProBonds.com!
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