Before diving into the depth of the topic, let us first understand the basics of lien. A lien is a legal right or the claim imposed by a person on the other person’s assets to get his loan back that he gave in the past. If the loan isn’t paid on time, it serves as an option that the loan provider has completed the right on the asset declared in the agreement form.
Suppose a person requested a loan from any other person, and they both agreed that after a specific time, that person would pay the loan, but if he fails to do so, his car will be the legal property of the loan provider. Such agreement is labeled as the lien. It is the primary concern of most people that How to put a lien on the car title?
How to put a lien on a car without the title?
A car lien stays on the title of a car until you repay the whole debt. When you pay the final installment of your debt, the lender will issue a lien release. But if you’re going to purchase a vehicle from a dealer, he will file a lien on your behalf. And if you want to know the process of putting a lien on a car without the title, you must follow the following two steps.
Step 1: Go to the Department of motor vehicles (DMV)
It would help if you visited the Department of motor vehicles or the state department that issues the car titles. Suppose you don’t know the exact location of the state department or the Department of motor vehicles. In that case, you can visit their websites for proper guidance about their office locations and timings to avoid the hassle. You can choose your nearby office and the timing that suits you.
Step 2: Application form
When you visit their office, they will issue you an application form. You are required to fill in your personal information, your vehicle’s information, and the lien holder’s information like his address and lien code. You can ask for the lien code from the customer care service of the lending organization.
Then sign the application and hand it over to the clerk. After that, pay the fee according to the fee criteria of your state. Keep the loan documents with you because you might have to shoe these to prove your case. After completing all the requirements, the state department or the Department of motor vehicles will issue you a new title.
Can I register a car with a lien on the title?
Car registration and the title are two different terms, but these are often confused with each other. There’s only one similarity that both these things are issued by the state department or the Department of motor vehicles (DMV).
Both are required to accomplish the legal framework of your car to drive it, own it, or refinance it legally. And will also get to know that How to put a lien on the car title? Once you have got the title, you can apply for the registration of the vehicle. It’s not compulsory that whether your vehicle has a lien on the title or not. And you will be surprised to read that even the owner isn’t compulsory to get the car registered. Registering a car means that you have paid all the government fees and taxes regarding this car and took responsibility for its operation on the public roads.
Can someone put a lien on my car without me knowing?
The modest answer to the question is yes. A lien can be placed on your car or any other asset without letting you know. The main reason behind it is the court orders. The lender may contact the legal authorities for a settlement of the lien, and as a result, your property was put on lien without letting you know.
To check whether your property or your car is put on the lien or not, you can visit the state authorities or the Department of motor vehicles.
Advantages of a car lien:
There are various advantages of a car lien that vary from person to person and situation to situation. It’s up to you that you want to utilize them or not. Some of them are as follows.
- A car lien can be helpful if you have bad credit. It will help you to remake your bad credit and to rise again.
- A car lien can significantly help you in terms of bankruptcy cases.
- You can build up your fallen business once again with the help of your car lien.
Buying and selling a car with a lien:
Buying and selling a car with a lien is a common phenomenon. Both are quite different and need to be analyzed separately with their terms and conditions. You can buy a car with a lien easily. Some people think it’s impossible to buy a car with a lien, but this isn’t. If you are seeking a used car and you want a car from a private seller instead of going to a dealership, you should do some legal work.
You need to check all the records of the car and must check that the lien is removed. Check for the lien removal carefully before transferring the title. If the lien isn’t removed, negotiate with the seller, compel him to pay his debt, get the clearance, and get the car transferred to you. Just like buying a car with a lien is quite simple. Similarly, the selling of a car with a lien is relatively easy. You can sell your vehicle to a dealership, or you can sell it to a private buyer. In both cases, you will be responsible for clearing the debt and removing the lien from the title.
Payment of loan and removal of lien from the title must be made before the transfer of the title.
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All the necessary information regarding car lien is covered in this article, and after reading it, you can confidently answer how to put a lien on the car title?