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Get a lien release when the lender is out of business, and clear the vehicle title.
A lien release is a necessary document to obtain a clean and clear title for a motor vehicle that has had a lien recorded against it. If a vehicle has an active lien, the DMV cannot issue a new title until the lien is cleared. Typically, once a loan is paid off, the lender will mail the title to the owner, indicating the lien has been satisfied. If this title is lost, the DMV will require a lien release form, such as the one used in California, which must be notarized and submitted. It is recommended to send the completed form via postal mail, including a return envelope, to facilitate the process. If the lender is out of business, successor institutions or registered agents may be able to sign the necessary documents. For more information, visit www.cartitles.com.
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