The Expert Podcast

So how do you get a lien released for a motor vehicle so you can get your title? There are several different scenarios that come into play. It could be that your loan is paid off, it could be your loan is not paid off, or it could be that your lender is out of business. There are a lot of different scenarios that you need to deal with, and each one has a different procedure.

How do you do this? Well, first of all, you need to make sure that whatever the scenario is, when you make your contact with the lienholder, you always do it in writing. Never do it by phone, email, text message, Facebook, LinkedIn—never do it that way. Always do it in writing via postal mail.

Here’s why: Lienholders do not have a department of people just sitting around waiting to do lien releases. Everybody at that bank is doing some other job—loan payments, new loans, title work, and other responsibilities. They’re not doing lien releases. So when you ask them to do a lien release by phone, that person now has to drop everything, find all the right forms, look them up, fill everything out, sign them, and mail them to you. They’re not going to do that. They might say they will, but then they’ll just go back to their job. Sometimes, they’ll even tell you outright that they’re not going to do that.

If you take it upon yourself to mail them the paperwork, you’ll get it back. We’ll talk about specifically what you want to send them, but do it in writing. If your loan is paid off, just contact the lender directly. It’s a lot cheaper and faster if you contact the lender yourself.

We have a title service that can do it for you, but it’s going to cost more money because now you’re paying us to do the work. It’ll take a little bit longer—it’ll probably add three or four days to get your lien release if we do it. However, it’s easier because then you don’t have to do all the paperwork. But that’s a personal decision.

If your loan is not paid off—if it’s a charge-off, a write-off, or delinquent—you still want to contact them in writing, but you also want to include what’s called a Letter of Non-Interest and an Affidavit of Facts. Those are two things you want to include if your loan is not paid off.

You will be back in your video in just a few seconds. In the meantime, remember that ActualHuman.com offers you live one-on-one private video consultation with an expert in this exact subject. We want to listen to your story, hear your questions, give you expert advisement on your options, and tell you what we know about your particular situation. Now, back to your video.

Many times, the lender will put it in their computer, type it up, see that it’s a charge-off, and then send you your lien release. Always make that attempt. If for some reason they don’t respond, you have a backup method, which is a magistrate title. We’ll talk about that next.

If the lender is out of business, your first step is to send out the package to the last known address for that lender. If you don’t know the address, you can look it up in the Secretary of State’s records, the corporate records, or the banking records. Send out that package. It might just come bouncing right back to you—that’s perfectly normal—but at least you can show that you sent it to their last known address.

If it comes back to you or if they’re not there, then what you do is file for a magistrate title, also known as a court order title. You just tell the magistrate, “Look, I tried to contact the lender. They didn’t respond. They didn’t claim the vehicle.” Then the magistrate or the court clerk can sign that lien release, and it still clears it off your title. That’s your backup method.

If the loan is in default, charge-off, or write-off, it’s the same process. Start by sending the request to the lender. If they don’t reply, then you file it with the magistrate and tell them, “They didn’t respond, and I want the court to sign off on this.”

Remember, you have a 0% chance of getting a lien release if you don’t make the formal request. If you make the request, then you have a shot. From what our clients tell us, about 82% of the time, even if there’s money owed, you’ll still get a lien release. If the loan is paid off, you’ll get it almost every time.

Always do it in writing—not by phone or email. If you do it by phone or email, your chances go back down to 0%. Even if the loan is paid off, the bank probably won’t send it to you if you just call them on the phone and ask. Always do it in writing. That way, you’ll have a record, too. If they don’t send it, you’ll at least know that you tried.

If you have more questions about lien releases, you can click the link below. We even offer consultations where you can talk live with a certified title agent about obtaining your lien release and what the instructions might be.

If you found this video helpful, be sure to check out other videos on our channel for more information that could help resolve your particular situation.