Do You Include A Letter Of Non Interest For A Lien Release?

Lean Release Request Package
Yes, when we prepare the lean release request package to send to lean holders, we also include what’s called a letter of non-interest. What is a letter of non-interest? Well, when a lean holder is requested to sign a lean release document as they’re, you know, um, they need to do to clear the lean off the title, sometimes if it’s an old lean, if it’s a charge off, if it’s a write off, if it’s not in their system, they can’t sign a lean release cuz technically they can’t release something they can’t see. They can’t release something that is not current.

The Challenge for Clerks and Administrators
So sometimes the clerk or administrator or the receptionist that’s signing it says, “Well, I can’t see that it’s released. I see that it’s charge off, I see it’s a write-off, I see it’s bankrupt, I see that it’s out of the system, but I don’t see release so I can’t sign this.” However, a letter of non-interest is an alternate document that basically says we no longer have any interest in this vehicle, or we don’t have an interest in this vehicle. Maybe the bank sold off that loan to another bank.

Simplifying the Process with a Letter of Non-Interest
But if they’re listed on the title, they’re the only ones that can sign off on that title. So if you provide them with a letter of non-interest, that’s a lot easier to sign because they can look on their system and say, “We don’t have an interest in this vehicle. It’s a write-off, it’s a charge off, we sold that loan to another bank, it went bankrupt, it was not in our system, it’s purged, it’s voided.” So by including that letter of non-interest, you’re increasing your odds that you’re going to get something back.

The Importance of a Return Envelope
Because if you just send a lean release, it’s an official document. It looks, it says, you know, under penalty of perjury, sometimes has to be notarized. Many times that clerk or person at the bank may not be sophisticated enough to know that they need to sign that. But a letter of non-interest is a lot more likely to have somebody say, “Yeah, we don’t have an interest in this vehicle,” sign it, send it back. As you know, we’ve said this before, it’s important to send a return envelope with that document because you don’t want them to throw it away cuz they don’t have a stamp.

Final Thoughts
So, letter of non-interest and return envelope is part of the process. Make sure that you follow all those details because leaving one of them out could be the difference between getting a clean title and still having a car you can’t sell.

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