Liens on your car can keep you from getting a loan when you need one, limiting your financial options for secured loans. Here’s your helpful guide to getting a lien-free title to a car so you can obtain an auto title loan.
To get a lien-free title to a car, start by paying off your debts. Once done, you can ask the lienholder to remove the lien from your title and issue a lien release form, which confirms that you have paid your obligations per the agreement.
Getting a lien-free title to a car isn’t always a straightforward process, and there can be a few caveats to consider along the way. If you're facing a financial emergency and need urgent money for life's unexpected expenses, check out our helpful step-by-step guide to making your car title lien accessible.
The Steps To Getting A Lien-Free Title To A Car
How Do I Remove A Lien?
A lien is placed on your title when you take out a loan, either to purchase a car or for emergency money.
As a result, the car isn’t technically yours until the loan is paid off in full; to the contrary, the lender is considered the legal owner. Liens are meant to protect the interests of the lienholder if you are purchasing a car or borrowing money for an emergency.
A lienholder, in this case, is the legal owner of the vehicle, a legal person or entity to whom you owe money. A lienholder can be a bank, financial institution, direct lender, or individual. In rare cases, mechanics, towing, impounding, and storage services can serve as lienholders, too.
Removing a lien from your car title involves paying your debts and having the lien released from your title. The process for doing so varies by state, but in Delaware, you’ll need to do the following:
- Pay off your loan
- Process the lien release at your local DMV office
Pay Off Your Loan
The first step towards removing the lien from your car title is to pay off what you owe on the vehicle, either to your direct lender or to the entity who loaned you money to buy the car. There’s no removing the lien until the debt is repaid in full; remember, until the lien is covered, the lienholder is the legal owner.
Most lienholders will be willing to work with you to explain your repayment plan and set a date for you to reclaim ownership. Once done, you can expect to receive the lien release form several business days afterward. This form proves that you, as the borrower, have repaid your debts and that the lienholder agrees to remove the lien.
Process The Lien Release
Once you have the lien release, your next step is to head to the local DMV office with the following items:
- The lien release letter
- Car title
- Registration card
- Proof of insurance
- Delaware driver’s license
- Payment for the $35 fee
A DMV employee will process the appropriate paperwork and issue you a new, clear car title.
How You Can Use Your Car Title For Emergency Cash
Now that your car title is clear, you can leverage its value when you need emergency cash. Delaware Title Loans, Inc. offers up to $15,000 for title loans.
You’ll need the following requirements:
- Your driver’s license or state-issued ID
- Your lien-free car title
- Your car itself for a brief inspection
Our Auto Title Loan Process
To start, fill out the online inquiry form to connect with our loan expert, who will walk you through the auto title loan process, what you qualify for, and what your monthly payment may be.
The associate will also be ready to set up an appointment with you so that they can inspect your vehicle. This meeting can take place at your nearest Delaware Title Loans, Inc. branch or a convenient location of your choice.
The condition of your car, along with the required documentation, weighs into your loan amount.
Bring your required items to the meeting, and our associate will go over them and check your VIN and the overall state of your car.
Based on their assessment, you may be eligible for a title loan, and if so, you can expect to get the money on the same day or the following business day.
Get A Title Loan Today!
Delaware Title Loan offers fast loan options for people struggling with financial emergencies, but it’s paramount that you have a lien-free title to a car. Now that you understand the process of removing a lien from your car title, you’re well on securing an auto title loan.
These loans can be a worthwhile resource to consider if you’re struggling to handle life’s challenges. If you’re facing something beyond your capability, consider completing Delaware Title Loans Inc.'s online inquiry form to start today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
