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thresher97024 t1_j6nnyao wrote

Most states you take that letter to the local DMV and transfer the title to have the lien holder removed.

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GoddessOracle OP t1_j6noito wrote

Oh geez ok, didnt know that. I googled it & it said that MI is a non title holding state so I just assumed all was good. Is the DMV basically like the SOS?

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Individual-Fail4709 t1_j6nytt2 wrote

And make sure you take a copy of your registration AND the letter from the bank saying it is paid off. They require it to get the title in your name only.

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frzn_dad t1_j6p5vbf wrote

Where I am the bank does it, got my title about 3-4 weeks after paying off the loan.

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OwariRevenant t1_j6pj6kp wrote

My MIL sold a car a few years ago, in Michigan. The vehicle was fully paid off, but the title she had still had the lienholder on it. You definitely should get a new title with the lienholder removed.

Yes, the SOS is the same as the DMV in Michigan.

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thresher97024 t1_j6np266 wrote

DMV = department of motor vehicles in my state (Oregon). Not sure what SOS is. That said, you can call your local office and they will tell Jo if a transfer is necessary as well as what the costs may be.

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corp-mm t1_j6ns5vj wrote

Secretary of State. It's MI's equivalent of the DMV.

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NewBayRoad t1_j6optid wrote

Usually there is no rush. I clipped the letter to the title and stuck it in the safe. You will need the lein removed before you can do anything with the car though.

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phil-l t1_j6nogc1 wrote

Keep that letter with the vehicle's title. Depending on how your state handles vehicle titles, your title probably shows a lienholder. That letter is proof that the lien was satisfied. My state has a two-part title system; after paying off the loan, the lender gives the lien-holder portion of the title to the vehicle owner. If the vehicle owner later sells a car that had been financed earlier, both portions of the title are required to complete the transaction.

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GoddessOracle OP t1_j6noyhk wrote

Gotcha, was worried I royally fucked up but it seems like its not too big of a deal that I didnt get them removed yet. Thank you for the info!

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phil-l t1_j6nrbiy wrote

In my state, I believe you can submit the original title and lien release - and get a new title that doesn't show a lienholder. I've never bothered doing this, and have sold cars that had originally been financed. I simply supplied both parts of the title when selling; no problem.

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Swamp_Donkey_7 t1_j6nqaw7 wrote

In MA, about 3 weeks after the final note, the title lien is released, and the state of MA sends you a new title in the main with only your name on it.

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GoddessOracle OP t1_j6nqkzv wrote

Ok see, that sounds like such a beautiful & easy process. Apparently in MI they just forget to send you your title & you still have to go to the hell that is SOS to get it taken care of. Lol

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Dirty_Dragons t1_j6oltha wrote

Be sure that the credit union has your correct address if you've moved at all.

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RedBaron180 t1_j6op1dw wrote

Digital title on file with state is way better then trying to hold on to a paper title

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eegopa t1_j6nzp11 wrote

Also let your auto insurance or insurance agent know that. Sometimes it can reduce your insurance rates when you hold the title.

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rednecktacoma t1_j6o57mx wrote

Would it lower the rate if you kept the same insurance? Or are you referring to being able to change to liability only?

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eegopa t1_j6o5xbl wrote

No I think it also adjusted us on the risk algorithm.

I think they assume someone who owns the car outright is more responsible?

Edit for clarification: We kept our same level of insurance but our premiums went down a bit.

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1hotjava t1_j6nrg19 wrote

Depending on the state you may have to take that letter to the DMV to get a “clear tjtle” (one without a lien listed on it)

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purplescottrock t1_j6noayj wrote

Call your credit union and ask them to mail the tittle. Mine forgot.

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GoddessOracle OP t1_j6nol3k wrote

I think that’s probably what happened to me as well. All I got was a congrats letter lol.

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1955photo t1_j6o0fv7 wrote

Mine did too. Turned out they lost it. Took 3 weeks to get a replacement.

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lucky_ducker t1_j6p54iz wrote

LPT: periodically review your vehicle titles to make sure they reflect your current reality. I was preparing to sell my oldest car to one of my adult children, and when I got out all three of my vehicle titles I discovered that:

A.) two of them still had liens from lenders that had long since been paid off, and

B.) two of them were still in joint name with my wife, who was deceased.

Took all three titles, both lien releases, and my wife's death certificate to the BMV to apply for clean titles for all three vehicles in my sole name. When it's time to sell the other vehicles I won't have to wait for clean titles.

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kveggie1 t1_j6ntip4 wrote

The CU should sent you the vehicle title.

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i_need_a_username201 t1_j6oxc2t wrote

Not in Michigan, he already has the title. He needs to go to the Secretary of State and get a clear title. Michigan does NOT have a DMV.

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AlissonLeech t1_j6otgdj wrote

Where I live, the state sends your title shortly after paying off the car loan.

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National_Tourist7679 t1_j6pbjwo wrote

In Michigan you staple that letter to your car title to prove that there is no secured lender. The name of the credit union is printed on the front as a secured lender till you pay it off. If you don’t have the letter when you sell it slows everything done as you have to get the proof from the credit union again.

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