If you plan to sell or donate your car or want to transfer the title to another person, you must be sure that there is no active lien and that no lienholders are listed on the vehicle title. How is this done? Well, in this article, we’ve compiled a thorough guide that shows you how to remove a lienholder from a vehicle title in New York
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Before we get into the details of how lienholder removal from a vehicle title, we’ll review some basics about liens on titles.
What is a vehicle lienholder?
A vehicle lienholder is typically a bank or financial institution that lends a consumer the money to finance a vehicle. The lender will generally pay the car dealership at the time of purchase, allowing a buyer to then make monthly payments until the loan has been satisfied.
Oftentimes, a dealership will have an affiliated lender who can supply the loan. For example, Honda Financial Services and Toyota Financial are common auto finance companies.
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How to Remove a Lienholder from a Vehicle Title in New York
Here’s some great news: In New York, you don’t have to remove a lienholder from the title in order to sell a vehicle. Instead, you can just hand over the original certificate of title and original lien release letter from the lender directly to your buyer. The buyer can then take these documents and apply for a new title in their name.
Please note that during all transfers of ownership, a title must be signed over from seller to buyer. This includes a title with a lien on it.
How to Get a Lien-Free Title in NY
If you prefer to have a New York vehicle certificate of title that does not have lienholder listed on it, mail the following items to the NY DMV:
- The original (not photocopied) lien release letter from your financial institution
- Your original vehicle certificate of title (not a photocopy)
- Payment in the form of check or money order made out to “Commissioner of Motor Vehicles.” At the time of this publication, the fee is $20. This is subject to change, so please confirm before sending your payment!
Send these documents to:
New York State DMV Title Services
6 Empire State Plaza
Albany, NY 12228-033
How to Remove a Lienholder Rrom an Out-of-State Title in New York.
If you’ve brought a vehicle into New York from another state and you’ve paid off the loan, the process of removing the lien is almost identical to an in-state title process. Follow all the above steps for removing the lien in New York. If your address is different from what is listed on the title, include proof of your current residence. Acceptable forms of proof of address include:
- NY photo ID
- Utility bill
- Pay stub or W2
What to Do if Your Title is Lost and You Need to Remove a Lien.
Fill out an Application for Duplicate Certificate of Title (form MV-902) and have one form of proof that the lien has been paid off. You can apply for a duplicate title in person at a NY DMV branch, via USPS, or quickly and easily online with eTags.
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Remember, for all your New York tag and title needs, you’ve landed in the right place. If at any point you need assistance with a transfer, replacement, renewal, or anything else, don’t hesitate to reach out to us. Because as always, at eTags, we’re here to help!
Lienholder FAQ’s
Does a lienholder own the vehicle?
Until a loan is satisfied, the financial institution does have legal rights to the vehicle. They can be seen as a co-owner, holding the car/truck/SUV/motorcycle as collateral until all money has been paid in full.
Whose name is on the certificate of title for a vehicle with a lien?
While there is still outstanding money owed on the vehicle, both the owner’s name as well as the lienholder’s name will be listed on the certificate of title.
Can you sell a car with a lien on it?
When selling a vehicle via private sale, ownership generally cannot change hands until the lien has been satisfied. If the loan has been paid off, the seller of the car must request a lien release letter from the financial institution. Once you receive this letter, you can then proceed to selling the vehicle.
How To Transfer a Vehicle Title in New York
What is a lien release letter?
A lien release letter is an official statement on bank or lender letterhead that the loan has been satisfied.
Can I prove that a lien has been satisfied without a release letter?
Yes. You can request something called a Notice of Recorded Lien (form MV-901). The lienholder can send this to you in lieu of a lien release letter. An authorized officer of the financial institution must sign this form, stating that the loan has been paid off.
What is ELT?
ELT stands for Electronic Lien Transfer. It is a program in which the lender and the NY DMV share information about the lien electronically without paper documents. The system allows lenders to notify the DMV once a loan has been satisfied, and thus, when a lien has been lifted.
26 comments
Hello, I purchased a 24 year old motorcycle with a lien that was charged off, due to theft. So the lien is satisfied and the bike is now in my name. But the lien is still listed on the title. Can I get a lien release even when this bike in someone else’s name. And yes they did let me register it with a lien on it. Thank You
Hello,
I purchased a brand new motorcycle in NYC back in 2001. I paid it of when I moved to Florida in 2005. Sometime after I received a letter from the title company (Conseco) with a Lien. Fast forward 6/24, I can’t sell the motorcycle to my coworker because the Lien on the title company Conseco/Greentree Financial both went bankrupted then merged with CNO Financial Group conglomerate that sells life insurance, who has not responded to my certified letters, sent to them a month ago. I don’t have a proof I payed the motorcycle off; which is not on my spotless credit report. This has been a nightmare because NY DMV wont do there part. I sent the NY DMV all supporting documents (per there request), the companies were contacted via notarized certified mail which met with no results. NY DMV has not sent me any emails, letters or call from my certified letter; verifying the certified letters were returned to me the sender and forwarded to DMV without been open. Can anyone help me with this mater?
Hi,
If a surviving spouse wants to take ownership of a deceased spouse’s vehicle that has a lien on the title, is the surviving spouse responsible for that vehicle’s lien? I
Thanks
Hello, that sounds more like a question for the financial institution that gave the loan. The lien won’t be removed by dmv without the lien release.
I paid off my lien but never received a notice of recorded lien that it was settled. I have the Odometer reading letter. And now the Leasing Co is out of business How can I get the title transfer to my name?
Hello! Do you have the title? The lienholder might’ve sent you the title after you satisfied the lien. You can use the DMV site to check the status of the title. You might need to look into what company picked up the loans that were still due. If you’re unable to reach anyone from the leasing company, try reaching out to DMV. I would assume any correspondence related to state titles needs to be forwarded to them. I hope this link is helpful.
Just received title from NY DMV there is no name on the title except the person from Chrysler Capital sign the title . We also got a letter from Chrysler Capital lien release and a bill of sale . We bought our lease vehicle.. the Jeep was registered to our company and paid thru our company and paid off thru our company.
So how do we sell it to an employee or family member when there is no current name anywhere on the tile . I am the owner of the company but ..no name was printed on the title to transfer it …..
Thank in advance…sorry if I dragged it out
Donald
If you bought out your lease, title would be in name of bank and signed on back for you to title in your name. If that’s the actual case, you can do a title only lease buy-out, upload the signed title, the bill of sale and registration (license if in personal name). https://www.etags.com/app/us?utm_source=blog_question
My car still has financing on it. It is broken. Can I legally junk it and continue to make payments?
No since it’s not yours legally. If you’re financing, that means you have a loan and that means your lien holder holds ownership and the title. You can’t junk it or sell it. All you can do is register it in your state so you can drive on public roads.
I have a lien holder that refuses to take a lean of my commercial vehicle. The lienholder has been on my title for 13 years now. what can I do?
We recommend seeking legal counsel. If the lien is paid off and you have proof to that fact, an attorney can assist you in recommending a course of action. You may also consider contacting the DMV in your state to inquire if there are any recourses for lien disputes. Best of luck.
I’m trying to get a Lien release from a car that was given to me, the car is paid off, I have all the receipts, the car dealership where the car was purchased is out of business, I don’t know what bank to contact to obtain the lien release forms from, what do I do first
The lienholder will be listed on the title. If the car was given to you, the person listed on the title will have to get in touch with the the bank to get that info. The dealership has nothing to do with it so them being out of business is irrelevant. We hope this helps!
I need help!! I totalled my 2021 kia seltos and it’s been paid off sense July 9th 2021 and kia motor finance has not sent me my title with no lien and will not send me a letter stating that my loan has been satisfied. It has now been over a month that I totalled my vehicle and have been asking for the lien release sense.. what should I do??? I can’t get paid through my insurance until I receive the letter or a new title without the lien.
The bank has to give you the lien release. You can use the state site to check lien status to see if there’s still lien, https://process.dmv.ny.gov/TitleStatus/?_ga=2.151365759.750353666.1618258364-1112143128.1607527026
Hello,
How do I remove the borrower/co signer from title, along with the lien? I want the title to just have my name listed.
I received letter to release lien from lien holder.
What are my next steps?
The lien release removes the lien, no need to get a title w/o lien listed. To drop an owner, the one being dropped signs back of title as seller and the one staying signs as buyer and then they submit as regular title only order.
Please how do I get the lien off the car. Thanks
Hey there, the info is all listed on the article you posted here. Just find the situation that best matches your case and file the documents needed. This NY state DMV article can you give more details too
The car is 37 years old. The lienholder listed on the title is no longer in business and we have been unable to find a successor. How do we get a clean title in NY.
You check lien status here: https://process.dmv.ny.gov/TitleStatus/?_ga=2.151365759.750353666.1618258364-1112143128.1607527026
And if the lien still shows, you can call the title bureau at 518-486-4714
COULD YOU PLEASE HELP ME ! WE SUBMITTED A DUPLICATE TITLE,MAILED OUT PAPER WORK,SENT IT BY UPS 1Z28W0950297071374 SINCE SEPTEMBER 09,2021 WE STILL CAN NOT CONTACT NO BODY FROM DMV NEW YORK,WE CALL ALL PHONES NUMBERS.
VIN#WVGBV7AX0GW589097 2016 VW TIGUAN.
Hello there, eTags is a private title and registration company not the DMV, so we can’t help you with your order. Yoou’d have to keep trying to contact the dmv. Have you tried tracking it?
Hello please I bought a salvage car with a salvage certificate but got to realize that it has a lien on it. Please how do I get the license off so as to get the title. Thanks
You have to contact whoever holds the lien to get it released. This New York DMV article should give you more info