A vehicle lienholder, typically the financial institution of where you bought your car such as Honda Financial Services or Toyota Financial, has a legal right to the vehicle. They’re the ones to “actually” own the vehicle until you’ve paid if off completely. Think of a lienholder as an auto loan lender; they hold the lien to your vehicle, be it a car, truck, SUV, motorcycle and the like.
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Since your auto loan lender holds the lien on your vehicle, they also hold the title certificate. When you purchase a vehicle, the lienholder, aka auto loan lender, files the lien with New York State Department of Motor Vehicles. Once the car’s loan is fully paid off, the lienholder sends a lien release document to the New York DMV, so that the car’s title certificate can be updated and transferred to you. Then, the vehicle officially becomes yours, and as the vehicle owner you hold the title and can sell your vehicle if you want.
According to the Federal Bank Reserve of NY, in the third quarter of 2020, auto loans in New York increased by $17 billion
What are the rights of a vehicle lienholder
While you’re repaying your auto loan, as the legal owner of your vehicle, the lienholder is allowed to repossess your car if you don’t make your monthly car payment. This can hurt your credit score and lose your vehicle.
If there are any personal belongings in the vehicle, your lienholder is required to return them to you. Also, a lienholder is allowed to required specific types of insurance coverage util the loan is paid off.
How to remove a lienholder with the New York DMV
When you decide to sell your vehicle, please note you don’t have to remove a lien from the title certificate. You can just give the original title certificate and original lien release, which is a separate document confirming that the vehicle is paid off in full, to your buyer.
New York state has a little over 12 million licensed drivers (2018), with a tad over 250,000 vehicle registrations in New York city alone and Queens over 837,000
What if you want a lien free title in NY
If you want your New York title certificate to have no lien on it, now that it’s yours, you can remove the lien by mail. The New York DMV needs proof that the lien was satisfied; asking you to mail in original documents as copies aren’t accepted.
The NY DMV also needs your original certificate of title as well as a $20 money order or check to the Commissioner of Motor Vehicles. Mail all those documents to Lien Release, NYS DMV Title Services, 6 Empire State Plaza, Albany, NY 12228-033.
In return, about two to three months later, you will get a title certificate that doesn’t list the lien. The NYW DMV will mail you the “new” title, you can’t actually go to a NY DMV office to process this lien removal.
What is considered proof that the lien on your vehicle has been satisfied (paid off)
You can ask your lienholder to send you a Notice of Recorded Lien and have an authorized officer of the lienholder sign it. This Notice is also called form MV-901, which you can provide to the NY DMV as proof that you’ve paid off your auto loan.
You can also request a letter from the lienholder. It must be printed on an official letterhead of the loan company, and again, an authorized officer must sign it. It’s important that the letter states the vehicle in question (yours) and that the lien was satisfied. If the lienholder is a person, meaning if your auto lender was an individual versus a loan company or financial institution, then that letter has to be notarized.
Some lienholders in NY are set up with the DMV’s Electronic Lien Transfer system (ELT), so they can file to remove the lien electronically. You’ll need to send in your title and proof lien is paid off and they’ll send a new title to you.
Yes, you can transfer a NY title with a lien listed on it
As mentioned before you don’t have to have to remove the listed lien in order to have the title certificate transferred to you, even if you’re looking to sell your vehicle. As long as you give the buyer/new owner the original proof that the any lien listed was paid off/satisfied.
The NY DMV will accept the title and proof that lien was satisfied when the new owner/your buyer will register and apply for a title. When the DMV processes the new title certificate for the new owner, the lien will be removed. Please note that is the new owner doesn’t provide that proof, the lienholder will still be listed on the title.
If your vehicle is registered in NY and you receive your title (once vehicle is paid off) from a lienholder who’s out of state, send the title to the Title Services Bureau in Albany. The DMV will send you a NY title certificate, with no extra fee because you paid the title certificate fee when you registered your vehicle in NY.
What to do if your title is lost but you still need to remove a lien
Simply send by mail an Application for Duplicate Certificate of Title which is form MV-902 and the original proof that the lien has been paid off. You can also apply for a duplicate title in a NY DMV office, in-person. It will cost you $20 and you’ll get a lien free title.
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