The Expert Podcast

So many times the inquiries we get about vehicle lien release have to do with a bank that's failed, a bank that has been closed out of business, or maybe merged with another bank. Well, there's a process for this, and the FDIC, the federal government, talks about it. How to obtain a lien release if you had a loan at a failed bank that you paid off and the bank's lien on your property was not released. This is what you do: first, confirm the FDIC has the authority. Not every single failed bank falls under the FDIC. Some of them will be merged with another bank. The FDIC may be able to assist you in obtaining a lien release if the request is for a customer of a failed bank that was placed into FDIC receivership.

So the first thing you have to do is use this tool to find the lienholder. Not every bank went into receivership. If the bank failed within the last two years and another bank purchased the bank, contact the acquiring bank, and that's how we do it. If the lien is not a subsidiary of the failed bank, they may also be able to assist you. FDIC cannot process lien releases for banks that merged, banks that were acquired, credit unions because that's not part of FDIC, or mortgage and finance companies. So in a very narrow situation, the FDIC may be able to do that. You'll have to file some paperwork and submit some documents, but the FDIC has this authority, and they do this for real estate, vehicles—cars or trucks—boats, mobile homes, aircraft, and also UCC's for business equipment.

So keep in mind that there are some tools you can use for failed banks. First, you have to do some research. If you need help with that or want more questions answered, you can reach us at our website, cartitles.com. We can also do a consultation with you about your specific scenario to see what the best way forward is to get a lien release for your vehicle, car, or truck.