Are you trying to remove a lien from your car title? A lien on a car title means that there is a loan out for the vehicle and it has not been satisfied or discharged. A lien on your title also impacts your ownership of the vehicle, which can be frustrating and confusing. There are several ways to get rid of that pesky lien on your title, here are the top 5 ways plus a bonus method to remove a lien from a car title.
The easiest way to remove a lien from a car title is to send a lien release letter to your lender requesting that the lien be removed. Typically, the lender is supposed to stamp and send you your certificate of title once your loan is satisfied, but we find that often this is not the case.
When sending a lien release letter, make sure to also include a pre-stamped envelope for the lender to send back the documents. The more paperwork you can complete for your lender in advance, the more likely you are to quickly get your lien release letter returned. If your loan is satisfied and you were the original borrower, this is the easiest way to remove a lien from a car title. If you were not the original borrower, you may have problems getting the lien released from the lender.
If your loan is old, your lender may no longer have interest in the vehicle. Similarly, sometimes when the loan is too old, the lender will discharge the loan from their system. In this event, a lien release letter is not applicable since they are not interested in the vehicle. In this case, send the lender a letter of non-interest where they will state they are no longer interested in collecting on the loan and that it is no longer in existence.
The problem is, that you may not know if your loan is too old or if it has already been discharged. We recommend, when sending a letter of non-interest, to also include a lien release letter just in case the lien records still exist.
Most people aren’t aware of this, but many lenders over the recent years have been shut down because they are not legally eligible to issue or collect loans. This occurs when your lender is unlicensed or otherwise in violation of state and/or federal law. Unlicensed loan companies are a huge risk to vehicle buyers. According to this 2016 article from The Morning Call, the author states that there were 535 Pennsylvania residents whose vehicles were liened by an unlicensed lender. In this case, all remaining loan charges for these vehicles are prohibited and repossessions are also prohibited.
If your lender was shut down due to improper licensing or unlicensed practice, your lien may have already been discharged.
Just like other types of businesses, lenders go out of business all of the time for all kinds of reasons, not necessarily because they’ve been shut down by the government. If you need to remove a lien from a car title but your lender is no longer in business, first search for the lender in your state’s Secretary of State database. From the documents in the SOS database, you’ll be able to find out if the lender has simply moved or has transferred their customers to another business.
Once you have addresses for the lender or new lender, send them a lien release letter and a letter of non-interest.
A court-ordered title is a last-resort option if all other methods to remove your car title lien have failed. A court-ordered title is obtained by filing a court case in your local county courthouse against the vehicle to have a judge declare you the legal owner by court order. In this process, be prepared to explain how you’ve already tried to remove the lien using the other proper methods. If you’re using this process, make sure your ducks are in a row.
If granted the court-ordered title, take the court order to the DMV and present it to them to be issued a new clean title in your name.
If you’ve paid off your lien and it’s just been sitting in the DMV records for 5-10+ years, there’s a good chance that the DMV in your state has already erased the records of the lien. After a certain amount of years in the DMV database, the DMV will purge their old records to make room for new ones. Auto loans typically have a shorter life than 10 years, so after this amount of time with no changes, there’s no benefit for the DMV to hold onto this record.
A car title lien can be removed by using any one of these methods. Remember, having a lien on your title significantly impacts what you are able to do with the vehicle. If it’s your car, you deserve a clean title in your name.
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Are you grappling with a vehicle title burdened by a lien, making it seemingly impossible to sell or transfer? Fret not, as we unveil five effective methods to liberate your title from the clutches of liens. Whether you’re dealing with a paid-off lien or facing challenges due to default status, these strategies provide viable solutions to regain a clean title.
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Have you faced challenges with liens on your vehicle title? Share your specific scenarios, questions, or insights in the comments below. Your experiences may provide valuable guidance to others navigating the complexities of lien removal. Let’s foster a community of knowledge to empower fellow vehicle owners.
As we explore ways to untangle the complexities of title-related issues, stay tuned for more informative discussions on CarTitles.com. Your journey to a lien-free title starts here!
In this insightful video, we delve into the intricate world of auto auctions, exploring the nuances of paperwork, title issues, and potential pitfalls associated with vehicles purchased from these auctions. Join the conversation by sharing your experiences and thoughts in the comments section below. Have you encountered challenges with titles or paperwork when buying cars from auctions?
Auto auctions serve as platforms where cars are sold on behalf of consignors, with dealerships being the primary consignors in many cases. Major players in the auction realm include Mannheim Auto Auction, Odessa Auto Auction, Copart, and IAA. From dealer auctions to municipal and police auctions, each type presents unique paperwork challenges for buyers.
Purchasing a vehicle from any source, especially auctions, without receiving a legal title upfront can expose you to risks during the titling process. The absence of a proper title could hinder your ability to register and legally drive the car. Let’s explore specific scenarios associated with different types of auctions:
Navigating the salvage title landscape requires caution. Salvage titles often bear a history of significant damage, and some titles may even be designated as “parts-only” or “certificate of destruction.” Understanding these designations is crucial, as they can render a vehicle ineligible for road use, regardless of its apparent condition.
If you’re not directly purchasing from the auction, chances are you’re dealing with a broker. Ensure you fully understand the paperwork they provide, as certain vehicles from auctions like Copart may not be eligible for direct consumer sales.
Before raising your bid card, make sure to clarify the following with the seller or auctioneer:
If you find yourself with improper paperwork, here are essential steps to take:
Have you faced challenges with titles or paperwork from auctioned vehicles? Share your experiences, questions, or insights in the comments below. The collective knowledge of the automotive community can provide valuable guidance to fellow enthusiasts navigating the complexities of buying cars from auctions.
As we explore the intricacies of auto auctions, stay tuned for more informative discussions and insights into the ever-evolving world of automotive transactions.
If you’re thinking about buying a kit car or an assembled vehicle, you’ll want to learn how to title it as well. Understanding the process of titling a kit car or an assembled vehicle is important before you commit to building a new ride. The laws for titling these vehicles vary from state to state and there may be special processes that need to be followed. Knowing about these processes will help you to complete the steps needed and avoid any potential delays.
Before registering your vehicle, however, it is important to know whether your vehicle is considered a kit car or an assembled vehicle as this will determine what documents are needed for registration.
A kit car is built by the owner or someone else. Kit cars are replicas of certain models of vehicles and are made in small numbers. The pieces are usually shipped to the buyer who assembles the vehicle or they can be purchased pre-assembled from the manufacturer. Vehicles that are made from kits, whether they are assembled by the owner or not, must be titled as a kit car or replica car.
An assembled vehicle is made when someone takes two or more separate vehicles and combines them into one using parts from each vehicle. Assembled vehicles also include rebuilt salvage vehicles where parts from other vehicles have been used to repair the original damaged vehicle after an accident.
The most important factor to consider when titling an assembled vehicle or a kit car is the VIN. Having a VIN is a prerequisite to getting a title. Before you apply for title and registration, you must have a VIN.
If the VIN is on one of the major components of the assembled vehicle such as the body or frame, you can use that VIN for your vehicle as long as it’s not logged in the NMVTIS database as junk or nonrepairable. If you don’t have the VIN from the body and frame or you have a kit car, you will have to apply for a new VIN from the DMV.
When you apply for a new VIN, this automatically triggers an inspection of your vehicle. Each state has specific requirements for kit cars and assembled vehicles. If your vehicle meets any of the general criteria, your vehicle may be denied a new VIN.
Kit cars are different from the conventional vehicles you drive every day. They are not regulated by the same standards as normal vehicles and have specific emission requirements. If you are rebuilding a kit car that is a replica, you only need to meet the safety and emissions standards of that model year. For example, if you purchase a 1956 ford model car kit, you only have to abide by the safety and emissions standards of that model year.
If your kit car is not similar to an existing vehicle model, then it needs to be inspected for emissions compliance at an approved smog check station after it is assembled and registered by the Department of Motor Vehicles (DMV).
If you are looking to get a kit car titled or even an assembled vehicle titled, the best advice is to do your research. Before you take any action, make sure to get your vehicle plans approved by your local DMV. Whether you bought the car from someone, built it yourself, or rebuilt it, if it’s your car, you deserve a title.
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 any title recovery method provided.
Want to discuss your complex title problem with a car title expert? Schedule a private, no-obligation consultation with a title expert through TelaClient.com.
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Buying a used car is an excellent way to get a great vehicle at a fraction of the price you’d pay for a brand-new model. When you buy from a dealership, they are responsible for getting you your title. However, when you buy from a private seller, some of that responsibility falls on you.
The vehicle title is the most important document in a vehicle transaction, but it’s also frequently overlooked. Before jumping into the private seller online market, be sure that you’re clear on your responsibilities in obtaining your title and what red flags to look out for.
The only title that is valid is the original certificate of title. The seller cannot provide a copy of the current title or a prior title with a former owner on it. If the seller cannot produce the title and refuses to get a duplicate title, this is a major red flag. This could indicate that the seller doesn’t have the title, there are title problems, or that the vehicle isn’t actually theirs to sell.
Always make sure that you have the valid original certificate of title in your hands at the time of purchase. If you pay the seller without getting the title signed over to you, your money is 100% vulnerable to being lost. Without the title signed over to you, you are not considered the legal owner. Until that title is in your name, you have no legal claims to the vehicle, you’ve just spent a few hundred or thousand dollars. If that vehicle ends up having a VIN problem or a title problem, you could be out of that money because those vehicles typically don’t end up back on the road.
If there’s no title, don’t continue the transaction.
Unless there is a special circumstance that you are aware of and have documentation for, such as a power of attorney, only the current owner listed on the front of the certificate of title can assign ownership to someone else. If they are not listed as the owner of the front of the title, they should not be assigning ownership of the vehicle to you. If there are two names on the title, but only one person is the seller, you must get the other owner to sign the title as well. The transfer is only considered valid if all owners sign off on the title transfer.
Request to see the seller’s photo ID before signing anything. If the photo ID doesn’t match the name on the title and there isn’t a power of attorney, this is a big red flag.
A title that has any sort of defect, whether it be physical or historical, may be ineligible to obtain a title.
Physical title defects are defects to the certificate itself. A certificate of title will be considered void if it has any stray marks, rips, tears, tape, staples, spills, coffee rings, or any other sort of alterations not made by the DMV. Even if you can clearly read the text on the title through the soda stain, it is still considered void. In this case, the seller will need to obtain a duplicate title before it can be transferred.
Historical title defects are considered title brands and liens. If the vehicle has a lien on the title, the seller cannot legally transfer it until the lienholder has been removed from the title. The lienholder’s name will be listed next to the owner’s name on the certificate of title. In this instance, the seller will need to obtain a vehicle lien release.
One of the most common historical title defects is a salvage title brand. Many vehicles look perfectly fine and normal but will have a salvage title due to prior insurance loss claims or theft. A vehicle with a salvage title brand will have SALVAGE printed at the top of the title. Most vehicles that receive a salvage title brand or other nonrepairable or junk brand are not intended to go back on the road. Salvage title vehicles can sometimes be repaired and reconstructed, but this involves a lengthy inspection process and detailed repair reports and receipts to be approved. The salvage inspection and repair process often ends up costing more than the vehicle was worth, to begin with.
Additionally, vehicles can also have back taxes associated with their VIN. In many states, if the prior owner lapsed the registration and failed to pay taxes on the vehicle, the new owner can be held 100% responsible for the back taxes before the vehicle can be titled and registered.
If the vehicle title is the most important ownership document, the VIN is the most important vehicle identifier. The VIN of a vehicle decodes to show the year, make, model, factory location, manufacturer, engine specs, trim, etc. Every vehicle has a specific VIN and no two VINs are the same. A VIN is 17 characters long and at first glance may look like a normal set of numbers that matches what shows on your new car.
However, it can be easy to misread a VIN by just glancing at it a few times. Take the VIN on the title and make sure it matches up in all places where the VIN is shown on the vehicle and on all associated documents. In addition, write down the VIN and run a VIN check through the NMVTIS before buying to make sure it matches the vehicle and to look for historical defects.
If the VIN on your title doesn’t match the VIN on the vehicle, one, you don’t own the vehicle, and two, you’ve just lost your investment in the car because now it can’t be titled and the ownership is under investigation.
If you’re planning to buy a car online from a private seller, consider these four tips when it comes time to hand over your money. Title scams are far too common, and the best way to keep yourself safe is to know the best practices for legal vehicle title transfer. Remember, until you have a title in your hand, the vehicle you bought is nothing more than an expensive lawn ornament. If it’s your car, you deserve a title in your name.
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