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A lien is a claim on property to ensure payment of a debt. When you borrow money to purchase a car, the lender files a lien on the vehicle with the state to insure that if the loan defaults, the lender can take the car. When the debt is fully repaid, a release of the lien is provided by the lender.
Since your auto loan lender holds the lien on your vehicle, they also hold the title certificate. When you purchase a vehicle, the lienholder, aka auto loan lender, files the lien with New York State Department of Motor Vehicles.
Obtaining a Lien Release on a Vehicle Satisfy the terms of the loan by paying the balance of the loan back to the lender, including any interest incurred. If you dont receive the lien release, submit a request to your lender for proof that the loan has been satisfied.
Yes, you can transfer a NY title with a lien listed on it As long as you give the buyer/new owner the original proof that the any lien listed was paid off/satisfied. The NY DMV will accept the title and proof that lien was satisfied when the new owner/your buyer will register and apply for a title.
The unpaid lien will stay on your credit report for 10 years after it is filed. After paying it off, it may stay on your credit history for up to seven years.
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People also ask

What states are title-holding states? AlabamaIllinoisNevadaCaliforniaKansasNew MexicoColoradoLouisianaNorth CarolinaConnecticutMaineNorth DakotaDelawareMassachusettsOhio6 more rows Jul 22, 2022
How do you resolve a New York State tax lien? Pay in full: Pay off the debt and the liens will come off. Arrange a payment plan: Once paid in full, the state will release the liens. Offer in Compromise: Negotiate a settlement wherein you pay less than you owe, which may be more difficult if you have valuable property.
There are only nine title-holding states: Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, New York, Oklahoma, Wisconsin. In the other 41 states, titles are issued to the lien holder of your vehicle until the loan is fully paid off.
To show that a lien has officially been removed on a property, you have to file a document called a lien release in the real property records of the county where the property is located. A release of lien simply means removing the lien claim from a specific property.
How long does a judgment lien last in Virginia? A judgment lien in Virginia will remain attached to the debtors property (even if the property changes hands) for ten years.

lien release letter from bank