If you finance a car through a bank, the bank automatically becomes the first secured party. Hence, you must include this information when you apply for the title of the car. A lien is placed on the title until you have fully paid off the debt. As soon as you make your final payment, your lender will issue a lien release to show that the car is now lien-free. If you are purchasing the car through a dealer, the dealer will file a lien on for you. However, if you already have the title but you need to add a lien, you need to adhere to the lien filing guidelines as stated by your state.
How to Put a Lien on an Auto Title?
· Visit the Department of Motor Vehicle (DMV): You have to go to the office of the DMV or the state authority that issues car titles. To find the nearest DMV office in your state, you can check https://www.tfctitleloans.com/online-title-loans-by-tfc/ enter your city, zip code, and state and you will get a list of the nearby office phone numbers and addresses.
· Obtain a Title Application: Fill out your personal information, lien holder information (including lien code and address), and the vehicle information. You can get a lien code from the lending institution’s customer service if you don’t have one. Sign the application and submit, pay the required fee to add a lien holder. The lien holder fee varies from state to state. The clerk may request for the loan document for verification and also to open a file for your details. The DMV will issue a new title. The title is mailed directly to the lender as the first secured party, although, this depends on the state you live in. You will be copied in the mail. In some states the lender receives a lien notice while the owner receives the title.
Items You will need:
· Loan documents
· Lien holder information
· Fee
· Title application
Here is a list of items you will need in order to put a lien on an auto title:
· It is possible for an individual to file a mechanic’s lien for non-payment of a debt like loan or services. He will need to provide an unpaid contract or bill depending on what is applicable in your state. Hence, it is important to find out what is applicable in your state before filing at the Department of Motor Vehicles (DMV). In certain states, you need to file a mechanic’s lien in court.
· As soon as you make your final payment to pay off the loan, your lender will send you a mail containing your title and a lien release. Afterwards, you will have to take the lien release and the title to the Department of Motor Vehicle (DMV) office in order to request for a lien-free title.
In conclusion, it is mandatory you contact your local Department of Motor Vehicle (DMV) in your state to know what are the requirements for filing a lien in your state. Learn more at https://medium.com/@1lowdr/consider-a-title-loan-for-cash-today-its-all-online-with-tfc-537d1733a33c