Lien vs. Title: Understanding Vehicle Ownership and Legal Rights

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  • What is a Vehicle Title?
    • A vehicle title is a legal government-issued certificate that proves ownership.
    • Titles are issued by state agencies such as the Department of Motor Vehicles (DMV) or Department of Transportation.
    • It is a physical document, not something you can download or print from the internet.
  • What is a Lien?
    • A lien is a claim against the vehicle's title, typically by a lender.
    • When you finance a car, the lienholder’s name appears on the title to protect their interest.
    • The lien must be cleared (lien release) before you can get the title in your possession.
  • Lien Release Process
    • The lienholder must sign off to release the lien once the loan is paid.
    • Many times, lienholders don’t notify the DMV after a lien is cleared, leaving the title record still encumbered.
    • Lienholders avoid updating DMV records due to the costs associated with filing lien releases.
  • Challenges with Liens and Lien Releases
    • If you lose the title or sell the vehicle without clearing the lien, the DMV still shows an active lien.
    • For charge-offs, write-offs, or bankruptcies, lienholders don’t notify the DMV, keeping the vehicle title encumbered.
  • Steps to Get a Lien Released
    • Send a lien release request package to the lienholder with all necessary documents (affidavit, letter of non-interest, etc.).
    • Avoid phone calls or emails; send the package by mail, including a pre-stamped return envelope.
    • Make the process easy for the lienholder to avoid delays.
  • What if the Lienholder Doesn’t Respond?
    • File a court petition for a court-ordered title in the county where you live.
    • Show proof of reaching out to the lienholder and their lack of response.
    • The court can then declare you the owner and order the lien release.
  • Common Misconceptions
    • Financing a car doesn’t mean the lender owns it; you are the legal owner.
    • The lienholder only has a claim, not ownership of the vehicle.
  • Resources Available
    • Visit our website for resources, checklists, and videos to resolve title issues on your own.
    • We offer title services, paperwork assistance, and consultations with certified title experts.
  • Need More Help?
    • Book a video call, use chat services, or consult a title expert through our website.
    • Watch other videos on our channel for more information on resolving title and lien issues.
  • Reminder
    • Always ensure liens are cleared from the title record before transferring ownership.
For more detailed guidance and to explore title services, visit our website.

Lien vs. Title: Understanding Vehicle Ownership and Legal Rights
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