Submitted by GoddessOracle t3_10q3xw5 in personalfinance
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.
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!
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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