How to Obtain a Clean Title for a Paid Off Loan

After you finally pay off a secured loan in full, the lender is supposed to remove his name from the property -- most commonly a car or house. Since the loan is no longer associated with the property, you need a clean title, meaning that it does not contain information about the lien holder. In some cases, the lender routes the title through the state or county office that manages these matters on your behalf. In other cases, you might have to take care of the whole process of getting a clean title yourself. The exact process varies by state.

Instructions

Car Loan

1

Call your lender to ask for confirmation that youve fully satisfied the loan. In some cases, even though youve sent your final payment, the lender might still show an open balance due to late fees or other costs. Settle those costs to fully pay off the loan.

2

Ask for a timeline from the lender to receive your car title and notice of loan satisfaction in the mail. It usually takes a few weeks.

3

Review the title upon receipt to check the lien holders section. In most cases, the section is signed off by the lending official, indicating that the loan is satisfied. Take the title, along with the notice of satisfaction, to your local DMV office to request a clear title.

4

Fill out the required paperwork, present the notice of loan satisfaction and submit the old title to the department of motor vehicles for review. The DMV usually issues a new clear title via mail.

Home Loan

5

Contact your lender after you've made your last payment to request a satisfaction of mortgage. This paperwork is signed and stamped legal proof from the lender that you've paid off your loan and the lender is no longer a lien holder on the home.

6

Receive your satisfaction of mortgage and a copy of your mortgage note from the lender. Bring these forms to your local county recorder's office (usually located at the county or town courthouse).

7

Present your paperwork and fill out any required forms to request a new "clean" title (more commonly called a deed for a house). The recorder's office sends the new deed to your home after issuance. In some cases, the lender sends the paperwork directly the county recorder's office to save you the trip.

8

Check your new deed thoroughly to ensure it no longer lists the lender as a lien holder. File the deed in a safe place, such as a safe deposit box.