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

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

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.

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?

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

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!

Yes, in MI it’s the SOS.

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.

I thought so, thank ya!

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.

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

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.

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)

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

The CU should sent you the vehicle title.

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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.

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

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

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

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

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

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.

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

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.

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

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.

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.