Now that you have a basic view of what a lien is (from Part One), this segment entails the observation of the following: a. removing an "old" lien from a title and b. selling a vehicle with a lien on it
Removing an "old" lien from a title:
I want to state that a lien is a lien, however emphasis is placed on the word old, because some people have liens that have been on a title for years; even though the vehicle is actually paid off. Unfortunately, the owner of the vehicle, loses his title and goes to DMV to get a duplicate one; while at DMV he is informed that a lien is on the vehicle. Accordingly, the owner states that the vehicle has been paid off a long time ago or many years ago. The owner can't get a title because he doesn't have proof of the vehicle being paid off; so he must go to the lienholder for a letter of lien release, showing that the vehicle has been paid off.
Here's a twist to this matter in the worst case scenario: The lienholder may have dissolved or merged with another financial institution, over the course of some years. In essence, the owner of the vehicle realizes that the prior lienholder doesn't exist and must track the combined or existing merger of the new lienholder; so that a letter of lien release can be obtained. If the owner is successful, the letter of lien release must show the merger.
Selling a Vehicle With a Lien on it:
If an owner or owners of a vehicle is selling a vehicle with a lien on it, the owner's need permission from the lienholder stating that the vehicle can be sold or transferred. If the lienholder okays the sell, a contract is established between the new owner/s and the lienholder and a transfer of lien takes place. There are cases in which there are two owners on a vehicle title, but one wants to remove their name. This is fine, as long as the lien holder okays it and does the transfer of the lien. A word of advice that I want to mention when selling a vehicle with a lien on it-- is caution; if you are trying to avoid the lienholder and are trying to "put yourself in the lienholder's place" instead. For example, if you have a lien but are selling the vehicle to your friend, who in turn is supposed to be making payments to you; there is a risk involved because your friend doesn't have a title/registration showing themself as the registered owner. In truth, if your friend chooses to stop paying you; you are stuck holding the bag because you had a lien on the vehicle and you didn't get clearance to transfer the lien in the first place.
If you find yourself with a lien issue, regardless of the dilemma, Wisdom & Authority Titling Solutions, has a solution for you today. Don't get tangled in the web of lien mistakes, get help today.