A Guide to Lien Releases: How to Get Your Car Out of Debt

A Guide to Lien Releases How to Get Your Car Out of Debt

If you have ever fallen behind on your car payments, you may have been worried about what would happen to your vehicle. The good news is that most lenders do not want to repossess your car—they would much rather work with you to get the debt repaid. One way that this can be done is through a lien release. This blog post will provide a guide to lien releases and answer some of the most common questions about them. Keep reading for more information!

 

What is a Lien Release?

A lien release, or lien claim, is a way of legally securing debt payment through using another person’s property. For example, when you borrow money to buy a car, the lender secures its lien on the automobile by filing a claim with the state. The lender will then grant a lien release once the debt is entirely paid off.

 

Who Files and Executes Lien Release?

The person who places a lien on a property is referred to as the lienor. For instance, a lienor is a contractor or supplier who places a lien on a property owner’s house to ensure payment. The person who holds a lien is known as the lienholder or lien claimant. A lienor may be any of the following people in reference to a mechanic’s lien:

  • Carpenter
  • General contractor
  • Drywall installer
  • Electrician
  • Framer
  • Roofer
  • HVAC specialist
  • Painter
  • Plumber
  • Landscaper

The person who filed the initial lien on property generally creates and files a lien release after receiving payment. However, if the lienor has established a Power of Attorney and designated an agent, their representative may submit the lien release on their behalf.

 

What’s Included In a Lien Release?

Creating a lien release will require you to provide the following information:

  • Lienor information: provide the lienor’s complete name.
  • Property owner information: Include the property owner’s full name and specify whether there is one owner or multiple owners.
  • Hirer information: If you were in direct contact with the individual who hired the lienor, provide their name.
  • Lien payment details: State the amount the property owner paid to settle the lien.
  • Court details: Make sure to include the following information in your claim: The date the lienor files the lien, the county and court where they filed it, and the book and page number of your claim.
  • Property details: Include the legal description of the property (e.g., street address, lot, block, street name, survey number, plat number, etc.) as well as county and city or town.
  • Signing details: Specify who will sign the lien release form (either you or your appointed agent). Also, include the date of signing.

 

Types of Liens

The type of lien release will depend on the property or asset in question and who placed the lien on it. The most common types of liens are as follows:

  • Auto lien: A lien placed on a vehicle by a lender until the borrower repays the loan in full.
  • Home lien: A lien that may be placed on a homeowner’s property by a contractor, plumber, or another professional who was not paid for their services.
  • Mechanic’s lien: A lien that may be placed on a homeowner’s property by a contractor, plumber, or another professional who was not paid for their services.
  • IRS lien:  A lien placed on a taxpayer’s property by the IRS to collect unpaid taxes. The lien release will not be issued unless the debt is settled.
  • Mortgage lien: A lien placed on a property by a lender as collateral for a loan. The lien is removed when the loan is paid in full.
  • Partial lien: A lien placed on a portion of the property rather than the whole thing. For example, a lien may be placed on a car but not the house.

 

How to Get a Lien Release

Once you have paid the debt in full, the lienholder will provide you with a lien release. This document releases the lien on your property and should be filed with the appropriate government office, such as the DMV or county recorder. The lien release will include the following information:

  • The name of the lienholder
  • The name of the property owner
  • The date the lien was fully paid
  • A description of the property

The lien release may also include a statement that the lien has been satisfied and that the lienholder has no further claim to the property.

 

Create a Lien Release Using DATAMYTE

If you’re a lienholder who needs to create a lien release, you can use DATAMYTE. Our platform makes it easy to create, file, and streamline the lien release process. The DataMyte Digital Clipboard, in particular, is an amazing software that helps create lien release templates of all shapes and sizes. 

With DATAMYTE, you can also add lien release forms to your website so property owners can easily access and fill them out. You can save time and money by not having to send lien release forms manually.

With our easy-to-use drag-and-drop interface, creating lien release forms is a breeze. Book a demo with us today to learn more about how DATAMYTE can help you with lien releases!

 

Conclusion

Whether you’re a lienholder or a property owner, it’s important to understand lien releases and how they work. With this guide, you should better understand what a lien release is and how to get one. If you need help creating a lien release, check out DATAMYTE. Get started today!

 

 

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