How to Release Liens on Automobiles

If you have ever financed an automobile and had to make payments, there is no better feeling than to pay the loan off and own your car with no liens on the title. There are a few details that must be taken before you truly own the car free and clear.

Instructions

1

Call your lender who is holding the lien on your automobile. Ask for a final payoff of your loan and explain that you want to receive your cleared title as expeditiously as possible. If you are planning to sell or trade in your car, you will want to have your title showing it released of liens as soon as possible.

2

Send in your final payment on your automobile. You can do this by mailing in a check for the final payment or making the payment online with your bank (if your bank is your lien-holder). If you want to expedite the final posting of the payment, pay it online or send in a cashier's check for the final amount.

3

Follow up with your lender by calling and asking the customer service account representative to tell you when you can expect your title. When the lender receives the payment and posts the correct amount to the account, they will pull your car title from file storage. They will sign off in the space for lender lien release on the back of the title, date it and then they must forward it to your State Department of Motor Vehicle (DMV) division. The DMV office will check the vehicle identification number (VIN) against what is shown in their system, change the information to cleared or unliened and issue a cleared title. This will be sent to you (or it may be sent back to the lender, who will in turn send it to you).