The Expert Podcast

So what if you had a car and you stopped making payments on it, can you still get a title? Well technically if you've stopped making payments on a vehicle you're in default that loan is in default But what happens after that many times as you probably have seen. If you're watching this video. The lender is going to bug you about payments for two or three or four or five months They're going to hound you Call you message You send letters, nasty letters. But then at some point it's going to slow down It's going to stop.

Then a couple of months later you might get some calls or contacts from a collection agency or some other company besides the lender. And that may go for a few months and then that'll stop. And eventually your credit report will show. what's called a charge off our write off and you may get something in the mail. From the lender saying that it's a charge off What does that mean?

Well charge off simply means that the lender now I can no longer call that loan and asset on their books It's an accounting.

activity. That means that they can't say this loan means anything to them It doesn't have any value because prior to you being in default on that loan, That car loan that you owed them was was an asset to them It was just like having money in the bank. As soon as it became non-performing now it's not an asset. What that also means is that you may be able to request a lien release to get it cleared off the title because here's the thing. Just because.

a charge off or a write off doesn't mean it goes off your title. Right It doesn't mean that the DMV removes it from your title record It's still on your title now. What you also found is the the lender normally doesn't want the car back In fact you may have called them up and said come get this car. And they said no we don't want it Or they might've said yeah we'll come get it And they never do. Right lenders Normally don't want vehicles back They're not in the car business They're in the money business.

If they get a car, they have to ship it repair it, clean it recondition bring it to an auction pay auction fees sell it. Transfer title a lot of times it's not worth all the aggravation. Sometimes it is. But they know that many cars that are cheap. off or in default.

Our done for a reason because they're damaged The engine blew up Transmission's no good, or it's not worth that much money. By the time they pay thousands of dollars out of pocket to transport ship repossess all that. They may get some of it back They may get all of it back but in the long run it's not worth it So unless it's a very late model car, a brand new loan something that's current. They're not going to want the car back. So how does that help you with a lien release?

Well, If you would approach the lender in a certain way, you have a pretty good chance of getting a lien release What you can do is you can do what's called lean mitigation…

instead of just calling up the lender and saying give me a lien release or, you know emailing them. Do. it in writing If you take the actual lien release document which is an official government DMV form. Print it out. Fill it in with your vehicle information VIN number year make model all the details.

And put a little arrow sticker where they want them to sign and mail it to the lien holder…

Somebody is going to receive it at the lien. the financial institution. They'll remember lien holders don't have a lien release department There's not people sitting around waiting just to do lien releases. It normally will go to some other administrative department. They're going to pull it up check the VIN number put it in the system.

And it's going to say charge off right off. So they might just sign it and mail it back to you. Make it very easy for them. Put a return envelope. Put your address on it, put a stamp on it.

Cause all you want to do is have that person make it real simple sign it and send it back. If they have to go to the mail room check with somebody get a stamp. It may come up that somebody says no don't do that. Right. So you want to make it very easy In addition to that…

Send out more than one copy. Right Find multiple addresses for that lien holder If it's. lien holder has more than one location I find multiple locations their main brands their local branch. DMV branch whatever you can find send it to four or five places. Cause all you need to get back is one.

And then you can clear your lien. Most of the time, if you do it that way and it's a non-performing loan meaning it's a charge offer right off you'll get back a lien At least we get them all the time. In fact, this is one. We received in the mail from one of our customers. this is from credit acceptance.

One of the major lenders. sealed envelope I just came in the mail…

And. There you go lean release right here

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Statement of no interest. Right. And that shows that that vehicle. This is a. 2012 Chevrolet.

Has no more lien. So all the, the okay. has to do is take this to the…

Department of motor vehicles and it clears their loan. So this is something that is a very valid method of getting a lien release. The lender doesn't have to do it, but if you play your cards right many times you can get it done And for more information, check out our website it'll give you all the instructions on how to do this We do that all the time We send out many many of these. but if you haven't been paying your loan for awhile, this is the way that you might be able to get. A clear title So now you can sell the vehicle and you can not have to worry about it bogging down and clogging up your driveway.