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Removing A Property Lien

Removing A Property Lien

A lien is a legal claim or right against a property by creditors. Finding  any type of lien on a property throughout a real estate transaction could be a complete deal breaker in the sale. At a minimum, it may slow down the transaction procedure and turns out to be a nuisance for buyers, salespeople, and mortgage providers alike.

Removing A Property Lien

However, what happens when you are ready to put your home up for sale, but a title search exposes that there is a lien against it?

Following a title company discovering the lien, the transaction is going to usually be put on hold and the closing postponed. After there is a resolution to the lien, the closing for the sale can be rescheduled. Take into account that if a buyer is getting financed, the buyer’s new mortgage provider is unlikely to agree to finance the property until an acceptable resolution to the lien is established. Similarly, if a buyer is concerned that a seller cannot fulfill the lien, subject to their agreement, they could choose not to buy the property.

The wonderful news is that you could still sell the home, however, a resolution to the lien must be cleared in advance of the sale.

My Property Has a Lien … What Now?

Usually, it’s the seller’s responsibility to pay off the lien on his or her property on or prior to the day of closing. A lot of liens are paid off from the revenue of the sale when closing time comes. Whereas the removal of a lien can be a complicated procedure, there are various ways of doing so, comprising of:

  1. Paying off the Lien – After you ascertain that the lien is valid, the easiest way for removing it is to simply pay it off. Even when you need to borrow funds from relatives or friends, satisfying the debt is going to allow the property to become unimpeded, sold, and closed. You might be able to negotiate with the mortgage provider for a decreased settlement amount, subject to the type of debt and the seller’s circumstance.
  2. Petition for a Release-of-Lien Form – Following you paying off the remainder of your debt in full, the mortgage provider is going to file the form, known as release-of-lien. This is going to act as proof that the debt has been paid off and is going to officially release the lien from your home. The form gets filed with the county registries office in the county where the property is located, and the original gets returned to you.
  3. Wait Until the Statute of Limitations Expires – In some cases, you can have a lien removed without paying off the debt by waiting until the statute of limitations expires. For instance, the period a judgment lien remains on your property differs state to state. In the state of Arizona, this type of lien terminates 10 years following the date it was recorded. Using this method, you are still going to owe the debt, but having the lien removed opens the property to be sold.
  4. Negotiate with the Mortgage Provider – It could be possible to work out a deal;, in which the lien is settled without total payment. This can be sought using mediation, intervention, or informal negotiations.
  5. File for Bankruptcy – Bankruptcy is going to likely eliminate your responsibility to pay a bonded debt (like a mortgage), including any deficiency balance; nevertheless, you won’t be able to keep the collateral (the home, vehicle, or other property) unless you pay that which you owe. Bankruptcy, on its own, does not terminate a lien. If you are thinking about filing for bankruptcy, talk to a knowledgeable bankruptcy attorney that understands the issues that face you and can help you create strategies for retaining the assets that are most paramount to you.
  6. Get a Court Order – Occasionally, liens are acquired through deception, coercion, betrayal, or other illegal means. If you think your lien is invalid and the mortgage provider is not going to rectify the situation, you can file a motion through court and petition a judge to eliminate the lien. This can be challenging to prove, so concise evidence is going to be required. If the court accepts that the lien is not valid, it is going to provide an order that is recorded to show the lien eliminated from your property.

If the seller cannot clear the lien in a contractual period, the buyer may legally withdraw from the deal. Nevertheless, buyers that are fixed on a specific home may determine that it’s worth the extra time and energy to wait for the seller to settle the issue.

Dar-Liens Offers Lien Processing and Filing in Arizona

Dar-Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

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What is a Notice to Owner?

What is a Notice to Owner?

A Notice to Owner (NTO) is a written notice that officially informs the owner of a progress that the senders, typically a vendor or contractor not negotiating directly with the owner, is looking to the owner to make sure the senders is paid prior to payment being made to the contractor on the project.

Some state statutes require that a NTO be served on the progress owner no later than forty-five days from the date of initial labor, services rendered, or materials supplied to the project site as a precondition to ensure the sender’s right to lien the property should the sender not being properly paid for work carried out at the property.

These notices provide the owner the chance to confirm that the sender has been paid, usually by acquiring a “release of lien” by the notice sender when a payment is made to the contractor, so that the owner oversees downstream payments and is not later caught off guard with a lien against the property from someone with who the owner doesn’t have a contract.

Face-to-face/verbal notice to owner by the non-private party carrying out the project is NOT an alternative for a written notice to owner.

Serving Notices to Owner on each project is just a good business practice. Seen as a simple “price of doing business”, a NTO is going to better revenue by helping to make sure you get your money, create good contact between your business and those securing the payments, and safeguard your right to payment by protecting your right to lien a property if the need come up.

Who Should Serve the NTO?

Any possible lienor that is not negotiating directly with the property owner, like a subcontractor or vendor, is required to serve a notice to owner with three stipulations. A laborer, a professional lienor, and an individual that is working only on subdivision projects does not need to serve a Notice to Owner to ensure the right to lien. All other possible lienors that are not dealing directly with the owner is required to timely serve a Notice to Owner as a preluding step to acquiring lien rights. This notice must be served timely, as a preemptive measure, even where no issue has yet come up, if one wants to be able to later affirm lien rights. If this preluding step is not taken, the right to later affirm a construction lien against the property is lost.

What Does “Served” Mean?

Some state statutes provide specific methods for serving the Notice to Owner. These statutes use the words “serve” and “service,” described as “delivery in a specific way” and provides the below options:

(a) Physical Delivery: By physical delivery to the individual to be served; when an association, to one of the associates; when a business, to a supervisor, director, manager, or business agent; or, if an LLC, to an administrator or manager.

(b) Registered or Certified Mail: By sending the notice by certified or registered mail, with prepaid postage, or by overnight or second-day delivery with confirmation of delivery, which could be via text or email.

(c) Posting at the premises: If the method specified in (a) or (b) cannot be carried out, by posting at the jobsite.

What is a Release of Lien?

A possible lienor is going to be required to give releases on almost all, if not every, project. Generally, a Release of Lien is a discharge of the lienor’s right for liening the property according to the conditions of the release. These releases might be for a particular amount of money, for all lien rights through a particular period, or for both. Comprehending the terms and details inside releases is VERY vital.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

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What is a Lien?

What is a Lien?

If you have ever attempted to sell a or purchase home, you might be informed with property liens—which are linked to its mortgage. However, liens can additionally be put on other kinds of property, including vehicles or possibly work done on your home.

What is a lien? And how do you get one taken off? Here’s a breakdown of the way liens work.

Key Take Aways

  • A lien is a legal claim towards personal property by a lender to fulfill a debt.
  • Liens can be voluntary or involuntary.
  • Liens can make it more difficult to borrow money.

What is a Lien?

A lien is a legal claim against any kind of property that can be used as collateral to guarantee the paying back of a debt. Liens give the lender the right to sell the borrower’s property should they fail to repay the dues they owe.

A lot of liens are voluntary liens meaning both the borrower and the lender enter into the contract voluntarily. However, there are also involuntary ones, which happen without the borrower’s permission. These are usually the result of a legal dispute. For instance, if you owe taxes, the IRS might file a federal tax lien toward your property.

Types of Liens

There are many kinds of liens. Here are four general kinds:

  • Property liens
  • Judgment liens
  • Tax liens
  • Mechanic’s liens

How do Liens Work?

Below is how liens work, using a mortgage lien as an example.

When getting a mortgage to buy a home, the lender could put a mortgage lien on the home. This lien is voluntary and provides the lender with the right to take back the home should you fail to make your payments.

If you fail to make your mortgage payment, the mortgage lender might foreclose on your home and collect the unpaid debt by means of the sale of the property.

In relation to a mortgage lien, the sale of the property might not be sufficient to cover the unpaid debt linked to the lien. In this scenario, the lender might be able to assign the lien to another asset or property that the borrower owns.

How do You Get a Lien Removed?

Usually, the only way to get a lien removed is to pay the off the debt that’s linked to it. In the instance given above, that could either be by paying off the mortgage completely or permitting the home to be sold through foreclosure.

In situations in which the lien is placed against the law or the lender and borrower take issue on whether the repayment has been finished, a lien might be removed in court.

However, it’s important to not forget that removing a lien does not necessarily mean the debt is removed too. Whereas liens don’t show up on credit reports, not paying debt can adversely impact your credit scores. And that could make it difficult to be eligible for loans and credit at some point in the future.

Liens in a Nutshell

Liens are a legal device that lenders use to protect their investment. Whereas it’s normal to have a lien as part of a mortgage or vehicle loan, declining to pay the debt linked to the lien can have repercussions on your personal finances. It might also make it harder for you to sell your property or take out other loans down the road.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

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Preliminary Lien

Preliminary Lien

If you’re beginning a new construction project in Valley of the Sun, then you could have “send an Arizona 20-day preliminary notice” jotted down on your schedule Even though it’s scheduled, you might not fully understand what it means, and that’s why Dar-Liens wanted to clear up confusion concerning the preliminary notice.

Some may believe you are required to send the 20-day preliminary notice after their construction project concludes. Nevertheless, the requirement is inside of 20 days of their project starting.

Preliminary Notices

Bear in mind that you may hear a preliminary notice also called a “prelien,” “prelim,” or “preliminary lien notice.” Despite what you hear, they all give reference to official paperwork sent at the start of a construction project.

Why are preliminary notices so vital? They decrease risk, helping to guarantee you get paid for the work you finish. When sending a prelim, you safeguard your right to file a mechanics lien, should your client not pay. In addition, when sending a prelim, you’re adhering to the law. And, when you don’t send a preliminary notice, you are not going to be able to record a mechanics lien if you don’t get paid.

Generally, a contractor sends a prelim to the property’s owner, general contractor, and construction lender. Typically, this notice is sent through certified mail to everyone involved.

Though this explanation is straightforward, the steps are involved and differ by state, such that Dar-Liens clients rely on our employees to lend them a hand.

Your Arizona Pre Lien

Arizona varies from the general rule, though, in a few ways. Remember the following when sending your prelien and engaged in your project:

  • You are required to send the notice as first-class mail – including a certificate of mailing.
  • All contractors are required to mail a prelim, as well as general contractors (GCs).
  • When your project’s dollar worth (as stated on your prelim) increases thirty percent or more throughout the process, you might be required to mail an additional preliminary notice. Information on Arizona lien laws is in Arizona’s Revised Statutes.

Like California, you are required to send your Arizona preliminary lien notice within 20 days of beginning your project. Meaning the day you start work on the worksite is your benchmark, as Day 1, and you count 20 days from there (information is in Arizona’s Revised Statutes). Your recipients aren’t required to get it within 20 days, so there is still time to send your Arizona prelim, even inside of the final hours prior to the deadline.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

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What Is a Construction Lien?

What Is a Construction Lien?

A construction lien is an assertion made towards a property by builders, contractors or subcontractors that hasn’t been paid for construction completed on that property. These types of liens are created to safeguard professionals from the result of not getting paid for services provided.

A construction lien is going to make it challenging or not possible to sell or refinance a property since it makes its title obscure. In worst-case scenarios, it could force a sale of the build for providing the compensation.

Key Take Aways

  • Contractors and/or subcontractors can file a construction lien towards a property when the owner hasn’t paid for work finished on it.
  • A lien is going to make it challenging or impossible to sell or for refinancing a property.
  • When you are displeased with the quality of work finished, it’s your responsibility to find a resolution.

The laws in relation to construction liens differ by state. In some laws, it might be known as a mechanic’s lien.

Construction Lien Explained

If a property owner is displeased with the work completed by a contractor or other professional, merely not paying the bill is not going to resolve the issue. When the contractor has used a subcontractor(s) and hasn’t paid them, the home owner might be liable to pay them, and a lien may be used to guarantee payments are made.

A property owner that is displeased needs to discuss the quality of the work with their contractor and find an agreement to correct any issues.

A productive resolution finalizes with a supposed release of lien, which is a document that cancels the lien.

General Rules for Construction Liens

Even though state laws differ, construction liens can typically be filed only when there is a written contract detailing the nature of the work, the materials needed to be used, and the agreed cost for the work. Many states have varying laws for liens towards residential and commercial properties.

Avoiding a Construction Lien

When you’re having a remodeling project done, be sure it’s on a professional business foundation from the beginning:

  • Be sure you have a written agreement in place with your general contractor detailing the work to be done, what materials are going to to be used, the subcontractors and other workers to be employed, with a overview of the expenses.
  • Require verification that those subcontractors and others have been paid prior to you making your final payment to your general contractor. (As an alternative, you could require a written inventory of what each subcontractor is unsettled.)

If you’re entering into an expensive remodeling project, it’s wise to speak with an attorney about your state’s laws in regard to payment for services.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

Read More
Mechanic’s Lien

Mechanic’s Lien

A mechanic’s lien is an ensuring of payment to builders, contractors, and construction companies that repair or build structures. This type of lien also extends to material suppliers and subcontractors and additionally cover building repairs. The lien guarantees that the workmen get paid prior to anyone else in case of a liquidation.

Understanding a Mechanic’s Lien

Mechanic’s liens are usually required to secure construction assistance on a project. The lien stays in effect until the project gets finished and all construction workers have been paid.

From an investing perspective, it is essential to remember that mechanic’s liens commonly have a higher priority than other types of debt. This priority establishes the order of claims in the event of repossession or foreclosure.

The conceptual source of a mechanic’s lien dates back to the US’s early days. The lien was initially developed by Thomas Jefferson to create an estate owner in the new nation. The US had extensive areas of fertile land and a mechanic’s lien assisted people to monetize the land and construct farms. It is referred to as a mechanics lien since construction workers were called mechanics (or individuals that work with their hands) back then.

Mechanic’s Lien Enforcement

A mechanic’s lien can be utilized to handle both unpaid labor and material expenses associated to a construction project.

Each state has their own laws overseeing the specific kinds of expenses that might be included when filing a mechanic’s liens. Additionally, it’s worth considering that there might be time constraints and statutes of limitations when filing a mechanic’s lien based on when the work was carried out or when construction was finished.

This type of lien is also referred to as a materialmen’s lien or an artisan’s lien.

A property owner might feel inclined to resolve a mechanic’s lien sooner than later since a property usually can’t be sold while a lien is active. Any possible purchaser of the property would notice there is an active lien when they carry out a title search. Any recent owner would be held liable for handling liens connected to the property.

Mechanic’s liens are required be separate from machinery or possessory liens. The aforementioned gives the owner the right for filing a claim towards a property or share of real estate. The owner is required to follow due court process and is unable to expel property holders from their property. Machinery liens provide the owner with the right to retain a piece of machinery, like a vehicle, for delinquent dues.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

Read More
Who Can Put a Lien on a House?

Who Can Put a Lien on a House?

We like to think our home is where the heart is. However, that is not necessarily so, particularly when a lien has been placed on it, and you are the last to find out about it. In all fairness, a lien is placed to collect an overdue debt, but that doesn’t mean your own home needs be used as collateral. To bypass this situation, this post is going to review the various types of liens that can be placed on your property, and what you can do about them.

What Is a Lien?

A lien is a legal assertation, attached to your property, in which puts others on notice that you owe a creditor overdue debt. Prior to you being able to sell your property and give a clear title to your buyer, you need to pay off that lien.

What are the various types of liens on a house?

Voluntary Liens

Mortgages are prime examples of a voluntary lien. Here, the property owner—or debtor—voluntarily provides a financial institution—or creditor—a legal assertation to the property pending that mortgage has been repaid.

Involuntary Liens

Many creditors, on the other hand, can file liens toward your property without your approval. Known as an involuntary lien, and in a lot of cases existing due to an already existing law presents a creditor a lien on your property when you defaulted on a debt.

Judgment Liens

A creditor can also take you to court, win a judgment toward you and file the judgment through the county records department. Filing that judgment results in a lien on your home.

General Entities That Might Place a Lien On Your Home:

  • Attorney fees
  • Creditors
  • Contractors
  • The IRS
  • Child support/alimony
  • Real estate taxes

How Do Liens Impact Homeowners?

An outstanding lien can impact a homeowner in many ways, and none of them are favorable. You might lose your property should a sale be forced because of an outstanding lien. Additionally, your credit rating can take a significant hit because a mechanic’s liens and judgment liens are reportable to credit agencies, and factor into your repayment record.

How Do Liens Impact Sellers?

A lien placed towards your property could prevent you from selling the house. A buyer needs to be wary of a home that has an ‘obscure’ title, and no financial institution is going to present a mortgage to a property with lien put towards it.

How To Have a Lien Removed

One way to get a lien removed is to just pay off the debt. However, you can mediate with the lien holder for a decreased settlement and pay less than was initially owed. Nonetheless, make sure the creditor officially releases the lien from your property, and make sure to obtain a copy of the ‘release of lien’ for record keeping. There are several other ways to have a lien removed—eliminate the lien by filing for bankruptcy, hold off so the statute of limitations concludes, and, in specific cases, obtain a court order to have it removed.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

More Articles About Liens

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What Is a Property Lien?

What Is a Property Lien?

A property lien is a legal declaration on assets that permits the holder to acquire access to the property if liabilities are not paid. This type of lien is required to be filed and authorized by a state agency or county records department. It is then presented to the property holder with specific conditions notifying them that measures have been taken to repossess a portion of property.

Primary Property Lien Takeaways

  • This type of lien is a declaration, legally on assets that permits the holder to acquire admission to the property if liabilities are unpaid.
  • Property liens can be allowed for repossessing property like a vehicle, jet ski, or even a house should the owner default on mortgage payments.
  • Usually, these types of liens are the last step a creditor is going to take to collect an unpaid liability.

How Property Liens Work?

These liens can be utilized by creditors in a multitude of situations. A creditor is required to file and receive authorization for a property lien through a state agency or county records department. Each jurisdiction has their own regulations and rules overseeing property liens.

A property lien can be awarded for repossession of a real estate property, vehicles, jet ski’s, or equipment. A tax lien is able to also start a legal claim by the government to the property of a taxpayer in which might include financial institution accounts, vehicles, and real estate. A lien is usually the initial step a creditor is going to take to confiscate property. It presents an announcement to the debtor that measures are being brought about. Levy is also terminology related with a lien and is the real act of confiscating property. This could bring about a sheriff’s sale.

Creditors and Property Liens

This type of lien is usually the last step a creditor is going to take to collect an unpaid liability. The awarding of a property lien typically occurs following numerous attempts have been made to collect the liability through an external or proprietary liability collection agency. It can be an ideal way for debt collectors to collect what they are owed. It can also cause significant trouble for the borrower.

In the case of a real estate property, creditors might decide to acquire a first-order property lien following several missed payments have happened on a mortgage loan. A creditor has definite rights to the property in which is utilized as collateral towards the mortgage loan. Consequently, creditors can readily acquire a property lien on a mortgaged property in arears. These liens indicate that the creditor is looking to foreclose on the property. When a debtor is unable to pay, the creditor has total rights to the home when an initial lien has been awarded allowing priority for repossessing the real estate property for reselling for paying off the liability.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

Read More
Putting A Lien On A House In 5 Steps

Putting A Lien On A House In 5 Steps

When an individual owes you money and you do not receive a payment, there are several courses of action you can take. Sending letters demanding payment or hiring a collection agency can work, but if the efforts prove unsuccessful you can always file a lawsuit against the debtor. You can then use a court judgement to attach a real estate lien to the debtor’s home. After the lien is set, the debtor cannot refinance their property without paying off the owed debt first.

5 Steps To Put A Lien On A House

Here are the five necessary steps one must take to put a lien on a house:

1. Check For Statute Of Limitations

Statute of limitations for debt collections will vary by state, so make sure to contact an attorney to learn about your state’s laws. Every state will have specific guidelines for how much time you have to sue another individual for an owed debt.

Type of debt owed is another factor that can alter the timeframe of this action, regardless of the state. Knowing the statute of limitations is generally the first step in this legal process.

2. File A Claim In Court

Filing the lawsuit against a debtor in the proper court is essential. Not all courts in each state will have the power to grant specific requests.

If you are seeking a small amount of money, then it is recommended that you file in small claims court. Make sure you file in the small claims court that is in the county where the property is located.

3. Serve Court Papers

Serving court summons to the debtor is the proper way to notify someone of an impending lawsuit. You must notify the individual and give him/her time to respond and appear at a hearing, with the chance to present a defense in the case.

Not properly serving the court papers and giving the individual a chance to respond could dramatically change the case. The debtor could then have grounds to request the court overturn a ruling in your favor. A debtor can be notified in-person and by certified or registered mail.

4. Attend Court Hearing

Be sure to bring any proof that you have in this case to the court hearing. Proof could include something such as a signed contract by both parties, agreeing to an amount that will be paid.

If the debtor does not appear in court or the judge rules in your favor, the court will then grant you a judgement for the debt amount owed. The next step is to request an Abstract of Judgement which is a certified copy that proves the judgement is legitimate.

5. Record Lien

One of the last steps to take is recording the Abstract of Judgement against the property of the debtor. Again, this process will vary by state. Some states may require that you register the document with the Secretary of State’s office or the county’s land records office.

This will create the lien against the property. Always be aware of any expiration dates to know how long a judgement lien can last in your state.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to OwnerMedical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

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How Do I Get A Lien Removed From Car Title?

How Do I Get A Lien Removed From Car Title?

The lien removal process will vary by state, but it typically involves completing appropriate paperwork and paying a fee for the new vehicle title. If you are wondering how to get a lien removed from a car title, follow this guide.

What Is A Car Lien?

If you have been approved for financing to purchase a vehicle, then you need to get familiar with the term “lien.” A lien is essentially a safeguard for the lender of the vehicle. This represents the lender’s legal right to possession of the car until all debt is repaid.

When the buyer of the vehicle fails to make payments, the lienholder then has the right to repossess the vehicle. The lender can also insist that the asset is protected, making full insurance payments the buyer’s sole responsibility. Once the financing is completely paid off, the lien is released.

Purchasing a car from a dealership will offer the easiest lien process possible. Of course, a new vehicle will never come with a lien since you are the first owner. At a used car dealership, though, the dealer will generally take care of all paperwork needed to draw up a lien. Purchases from private sellers will be much different when it comes to liens, so make sure you know the status of any possible liens before finalizing a purchase. If any car still has a lien on it, the seller will need to make some sort of arrangements to pay off any remaining debts before transferring the title.

There are a few ways for the buyer to check on a lien of a particular vehicle. For example, you can simply ask the seller for a copy of the lien release document. Or, you can use state DMV resources that are always available to the general public. Some state online resources will let you run a vehicle check by using the VIN (vehicle identification number) from that specific model. Other resources such as CarFax can also reveal any existing liens.

How To Get A Title For A Car That Has A Lien

Once you have made your final car payment, the lender should either send proof that the lien was discharged (or released). If your state and lender participate in an electronic lien title program, it can be released electronically. Check with your state’s DMV or BMV to find out how to apply for a new car title that’s in your name.

After you’ve followed the state’s process for removing the lien and getting a new title, you will receive both the new title and full ownership rights to the car.

Different Ways To Get A Lien Removed From A Car Title

These are five common ways you can go about getting a lien removed from a vehicle title:

  1. Send a lien release letter to your lender.
  2. Send letter of non-interest to your lender.
  3. Your lender was shut down.
  4. Your lender went out of business.
  5. A court-ordered title.

What Happens When You Can’t Find The Lienholder?

It may be difficult to track down the lienholder in the event your car lender merged with another company, changed names, moved locations, sold the business, or went out of business. Begin this process by contacting your DMV or BMV. They will then likely ask for documentation showing proof that you have paid the lienholder back in full.

Dar Liens Offers Lien Processing and Filing in Arizona

Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to OwnerMedical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.

More Articles About Liens

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