How to File a Motorcycle Lien

An improperly filed lien leaves a creditor with no avenue to its collateral. The owner of a motorcycle does not truly own the vehicle until his financing is paid. The creditor's information is printed directly on the title at the time of acquisition. When the debt is settled, the state's Department of Motor Vehicles issues a new title without the creditor's name. If the creditor doesn't correctly file the lien, the creditor lacks the recourse needed to repossess the motorcycle.

Instructions

1

Read the title to get the motorcycle's year, make, model and vehicle identification number. Include this information on all paperwork.

2

Obtain financing paperwork, which varies by state and transaction. Typical documents include a promissory note and a security agreement. The promissory note is the agreement to repay the loan. The security agreement offers the motorcycle as collateral.

3

Acquire a motor vehicle financing statement from your state's Department of Motor Vehicles. The form must be specific to the state in which the motorcycle is registered. Complete and sign the financing statement along with the motorcycle's registered owner.

4

Attain a written statement from the vehicle owner specifying that he grants you permission to encumber the title to the motorcycle. Ensure that he identifies the vehicle using make, model and vehicle identification number.

5

Bring the motorcycle title, the financing statement, the owner's statement and a photo ID to your state's Department of Motor Vehicles.

6

Pay the registration fee. The amount varies by state.