lien free title

What Does It Mean To Have A Lien-Free Title?

Buying a vehicle is a major purchase for most consumers. They must borrow the necessary funds from a bank or financial institution. They will put a lien on your title. What is a lien? How do you get a lien-free title?

A lien is a claim on a property. If you finance an item such as a vehicle or home the lender will place a lien on the property. When you pay back all the money according to the agreement you will have a lien-free title.

Below we will look at what a lien is and how to obtain a lien-free title.

What Do I Need To Have A Lien-Free Title?

Vehicle Title

When you purchase a vehicle there is a lot of paperwork. One of the documents you will be required to fill out is the vehicle's title. The title is a legal document showing who owns that vehicle. When the purchase is completed, the vehicle will be registered with the DMV under your name.

If you cannot pay the full amount for this vehicle and you need to obtain a loan from a financial institution the lender will place a lien on your vehicle. They will have a legal claim to the vehicle. You will not be able to sell or transfer the title of the vehicle until you receive a lien release from the lender.

What Is A Lien?

A lien is a legal claim to a piece of property. It assures the lender that if you cannot make the payments or satisfy the agreements for this loan, they will be able to take the property and sell it to minimize their losses. If you can make the payments and complete the terms of the loan you will have a lien-free title.

Having a lien on your title will not affect your everyday usage of the vehicle. You can drive it, obtain insurance, and register your vehicle. You will be responsible for maintenance or any repairs needed on the vehicle.

If you stop or cannot make the required payments, the lender can repossess the vehicle. They can do this with or without notice, but most lenders will send out multiple notices before repossessing a vehicle.

Who Is The Lienholder?

A lienholder can be either a person or an institution that holds a legal claim against your property. Whatever lender you choose will be the lienholder for the vehicle you purchase. They will have a legal right to your vehicle until you satisfy the terms of the loan for that vehicle.

person filling out title loan application with text that says what does it mean to have a lien free title

What Is A Lien Release?

When you have satisfied the terms of your loan the lender will authorize a lien release with the DMV. This release will remove the lien from your vehicle, and it will be put into your name. The lender will no longer have a legal right to your vehicle. You will have a lien-free title. This can also be referred to as a clear title or owning it free and clear.

You can also file for a lien release if you decide to sell the vehicle before the terms of the loan are satisfied. You will still be required to use the money obtained from the sale of the vehicle to repay the amount remaining on the loan. Once you have satisfied the terms of the loan any additional amount remaining from the sale will be yours to keep.

Lien-Free Title Loan

If you didn’t have a loan for your vehicle, or you have satisfied the loan requirements and have a lien-free title you can use that vehicle to obtain the vehicle title loans online. A title loan with Tennessee Title Loans, Inc. can help you if you are having trouble paying your bills or need money due to an emergency.

A Tennessee title loan can be processed in the minimum possible time to get you as much as $2,500 today. We work with people with all types of credit scores to help them get the emergency money they need quickly.

Apply For A Title Loan Today

If you have a lien-free title, you can start the process of obtaining a vehicle title loan online today. You will need to fill out a short questionnaire and answer a few questions about your name, vehicle, and how much money you will need to obtain. After you have filled out the form a representative from Tennessee Title Loans, Inc. will contact you to set up an appointment.

When you travel to the nearest Tennessee Title Loans, Inc. location you will need to bring your ID, the lien-free title to your vehicle, and the vehicle itself. A representative will conduct a brief inspection of your vehicle at that time. They will finalize your loan and get you the money you need.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.