How Lien Releases Speed Up Title Loan Approvals Fast

Auto liens allow lenders to protect themselves if borrowers default on a financed vehicle, and they remain in place until the purchaser has repaid the loan in full. Yet, if you want to get a title loan, you will need the lien to be released as soon as possible because you can't gain title loan approval in Idaho without a lien-free title document.

What exactly is a lien release? How does it speed up the title loan process? How do you get one? In this guide from Idaho Title Loans, Inc., we will answer those questions and explain how title loan approval in Idaho works.

How To Get A Lien Release In Idaho

A car lien means somebody else has rights over your vehicle — often a lender. As previously mentioned, vehicles on finance are generally put under a lien until the loan is repaid, giving the lender the legal right to retain the title until payments are made. 

Once the loan is fully repaid with interest, the lender issues a lien release. This means they return the title to you and remove the lien, ensuring you now have sole ownership of your vehicle.

However, if you're in the middle of the car-buying process and a lien from a previous lender is in place, there are steps you can take to get a lien release. After all, buying a used car should not come with strings attached, especially from somebody else's auto loan. For best results, you should handle the lien removal before finalizing the purchase.

You can complete the lien release process with two easy steps:

1. Talk To The Seller

When purchasing a used car from a dealership, ask the representative if there is an active lien on the vehicle. In such cases, the dealer will take care of the lien removal. If you are financing the purchase with your own auto loan, your lender will become the new lienholder.

When buying a used car from a private seller, make sure they provide proof that the loan has been fully paid off. This proof can be anything from canceled checks to a paid-in-full letter. It's the seller's responsibility to repay the loan so they can transfer the vehicle's title to you. We recommend including this as a requirement in your purchase contract.

On top of that, it's best practice to contact the lender directly to check the lien status. You're within your rights to do this before finalizing the purchase. Request the total amount required to release the car, along with any other details that may impact the sale.

2. Ask For A Lien Release

If the lienholder is a bank (or a bank subsidiary) that failed, you will have to put in more legwork to remove the lien. Remember, you must fully pay off the cost of the automobile before getting a lien release. Do that and then proceed with the steps below to gain full ownership of the vehicle title.

The steps for this are as follows:

1. Confirm that the bank was placed into the Federal Deposit Insurance Corporation (FDIC) receivership. You can do this via the FDIC website.

2. If it failed within the past 24 months or more recently, and it was bought by another bank or financial organization, you need to get in touch with the acquiring bank for a lien removal.

3. In the event you can't find the lien holder, speak to the Federal Deposit Insurance Corporation and request a lien release letter. You must have the following items:

1. The title or non-negotiable title — Naturally, this must correspond to the vehicle that you're requesting a release for. It has to be legible and provide the following information:

                                          i.    Owner's name

                                         ii.    Lienholder's name

                                        iii.    VIN

                                        iv.    Title number

                                         v.    Year

                                        vi.    Make and model

2. Payoff proof — This can be anything from a lienholder's note, a payoff check copy, or other documentation showing payoff. You cannot use a copy of the borrower's credit report as payoff proof.

3. With all the necessary documentation to hand, you can register or mail the request to FDIC DRR Customer Service and Records Research. Make sure you submit requests directly through the FDIC Information and Support Center. Never add your Social Security number, and keep in mind that the FDIC process requests them as they arrive, so it's important to allow 30 working days for their response.

4. Once you receive the lien release, you can finalize your purchase and register the title with the Department of Motor Vehicles.

Once you have your lien-free vehicle title, you can use it as collateral for loans, such as a title loan. Getting a lien release before beginning the title loan approval process can make the process run more smoothly.

How A Lien Release Speeds Up Title Loan Approval In Idaho

Many people are unaware of liens until they attempt to sell their car and realize they can't because of an active lien on their title. However, if you've ever tried to get a title loan, you may have come across a similar hurdle. 

Title loans in Idaho require you to own your vehicle outright, without any outstanding liens or judgments. Therefore, going into the process with an active lien on your title slows — and ultimately stops — the process.

Once the lien is released, you can follow through with the title loan process. 

How To Get A Title Loan In Idaho

Once your lien release is sorted, you can start the title loan process with us at Idaho Title Loans, Inc. You can get approved for up to $15,000 in emergency cash based on your vehicle’s value. You just need to complete a few easy steps, all of which can be completed the same day you apply.

Before getting started, make sure you have the required items: a state-issued photo ID that displays your full name and date of birth, a lien-free vehicle title in your name, and your vehicle for a quick inspection. If you do, you can proceed with the process and get same-day title loan approval in Idaho.

Here is the approval process for Idaho title loans:

1. Start by completing our short online title loan request form. We only ask for basic information at this stage, so it shouldn't take you very long. Since we offer other loan types, make sure you select the right option before submitting the form. You will need to provide your name, zip code, email address, phone number, and vehicle details.
2. Once we receive your information, we will give you a call to discuss the process, answer your questions, ensure you have the necessary items, and set up a meeting date and time that suits you.
3. Head over to your nearest Idaho store location with the required items. Once there, we will inspect your items, verify your information, and assess your vehicle to determine its value (and how much you can borrow). This process takes less than 30 minutes.
4. If you are happy with the amount you qualify for, you can sign the loan agreement to finish the process. Be sure to ask any remaining questions before signing, as your signature confirms that you agree to all the loan terms and conditions. 
5. You will receive your title loan cash later that day or by the next business day!

Get A Title Loan From Idaho Title Loans, Inc. – Borrow Up To $15,000 Today!

Depending on your situation, getting a lien release in Idaho will involve a bit of extra time and legwork, but once it's completed, you will be able to access title loans. If you have a lien-free vehicle title in your name, you can use it to get title loans – all credit types accepted and no income required. Get started today by filling out our online title loan form and visiting us to get approved in 30 minutes.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.