If You Stopped Making Payments On Your Car Can You Get A Title?

  • June 22, 2023
  • 3 min read

In the complex world of car loans, defaulting on payments can lead to a cascade of events, leaving individuals wondering about the possibility of obtaining a title for their vehicle. This blog post aims to demystify the process and shed light on a potential solution: securing a lien release even after default.

Understanding Loan Default and its Aftermath

When car loan payments come to a halt, borrowers find themselves in default. Lenders typically initiate a barrage of communication, persistently seeking payments for several months. However, as time progresses, the intensity of these efforts tends to wane. After a certain period, the lender might cease communication, and a collection agency may step in. Eventually, the borrower’s credit report reflects a charge-off or write-off, indicating that the loan is no longer considered an asset by the lender.

The Impact of Charge-Off on Title Status

While the loan may be charged off or written off, it’s crucial to note that this doesn’t automatically remove the lien from the vehicle’s title. The title still bears the encumbrance, and it becomes the borrower’s responsibility to navigate the path to a lien release.

Lender’s Disinterest in Repossession

Surprisingly, many lenders aren’t eager to repossess vehicles. The logistics, costs, and potential loss associated with repossessing and reselling a car often outweigh the benefits for the lender. This insight presents an opportunity for borrowers seeking a lien release.

Lean Mitigation: A Strategic Approach

Lean mitigation involves a strategic approach to obtaining a lien release. Instead of a direct request, borrowers can take the initiative by filling out an official DMV lien release form, providing all necessary details about the vehicle. This document, accompanied by a clear indication of where the lender needs to sign, is mailed to the lender.

Tips for Successful Lean Mitigation

  1. Prepare the Lien Release Document: Obtain the official DMV lien release form and fill it out with accurate information about the vehicle, including the VIN number, year, make, and model.
  2. Strategically Approach the Lender: Rather than a direct plea for a lien release, send the prepared document to the lender. Make it easy for them to sign by providing a return envelope with postage.
  3. Explore Multiple Addresses: Increase your chances by sending copies of the document to multiple addresses associated with the lender. This includes main branches, local branches, and any other relevant locations.
  4. Persistence Pays Off: Since different departments within the lender’s organization may handle lien releases, sending multiple copies to various locations increases the likelihood of success.

A Real-Life Example: Securing a Lien Release

The effectiveness of lean mitigation is exemplified by a real-life example. A lien release from Credit Acceptance, a major lender, was received through the mail. The sealed envelope contained a “Statement of No Interest,” signifying the successful clearance of the lien on the 2012 Chevrolet.

A Path to Title Clarity

For individuals grappling with car loan default and the lingering lien on their title, lean mitigation offers a potential solution. By strategically approaching the lender with a properly filled-out lien release document, borrowers can pave the way for title clarity, enabling them to sell the vehicle without encumbrances.

Explore Your Options

For more detailed instructions and insights on securing a lien release, visit our website. We specialize in guiding individuals through this process, offering a viable way to obtain a clear title even after facing loan default. Don’t let past financial challenges obstruct your path; explore the possibilities and regain control of your vehicle’s title status.

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