As the legal owner of your vehicle, a lien holder has several rights. You’ll want to fill out your personal information and vehicle information. Why? We are a referral service and work only with licensed lenders/brokers. Once the owner of the vehicle has repaid the lender in full, he can get the lien released. In this case, the property is a vehicle, and the lien title likely means the registered owner still owes money on a loan. You can sell a car with a lien, but the lender has the first right to any money you make on the sale. This can happen if a plumber or home renovator goes unpaid after performing a job for a client. A lienholder may be leasing a car to you while collecting interest, or they gave you money to purchase the vehicle. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed. Construction or contractor liens are liens that are filed against a property owner who didn't pay their contractor. She holds both an M.A. The lien is listed on the title and gets released only when the loan is repaid in full. Only mortgage activity by Credit Karma Mortgage, Inc., dba Credit Karma is licensed by the State of New York. *Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. To learn more about car liens and what to expect when buying a car with a lien, continue on. For more information about your state's coronavirus (COVID-19) updates, see our. The idea of a lien is to prevent the sale of that property without payment in full of the loan. Credit Karma is committed to ensuring digital accessibility for people with disabilities. In some cases, the owner can make this request through the DMV. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. And become more knowledgeable about financial matters to create a bright future. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA. Be sure you maintain the copy your receive as it is crucial to your car for proof of ownership. A lienholder is the financial institution or individual that holds the rights to the title of the vehicle. This includes services or a loan. Otherwise, placing a lien on a car out-of-state can, at times, be tricky. In turn, you’ll receive a copy in the mail. The process of paying off a car lien can take five full business days, or a little longer. We think it's important for you to understand how we make money. If you owe even the smallest amount of money on the lien, the lender has the right to repossess the vehicle if you do not make this payment. And to further protect themselves, lien holders can require you to have certain types of auto insurance coverage — typically comprehensive and collision coverage — until you pay off your loan. Cars are naturally mobile, unlike real property, so the lender wants to be sure the new owner doesn't disappear in a puff of exhaust. Typically larger loans or higher risk loans use a GPS. It’s suggested you contact your local DMV to identify the fees you’ll need to pay for the lien filing. We may earn money from the links on this page. A lien on a vehicle title is a form of security interest. If you buy a vehicle with a lien and have to finance it, the lender has the first lien and the debt collector has the second.