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A bank/finance lien is placed on a cars title to indicate that the owner has not finished paying off the loan for the car. If the car owner bought the car with cash instead of taking out a car loan, or if the loan has been paid off, there will be no lien.
You have to request lien release documentation from your bank or whoever you had the loan through. You will then take that paperwork to the DMV and they will file it for you and remove the lien.
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.
If there is a lien on a vehicle, yes, you should be concerned, very concerned. It could be a clerical error, lack of an update on the cars history or an outdated report, or it could be something very serious such as someone trying to sell a car they do not own. In any case, you need to protect yourself.
A lien is created as soon as you finance a car. In most states that means the lender holds the cars title and is considered the vehicles legal owner until the loan is paid in full. The lien protects the lender and allows them to repossess the car if the borrower stops making payments.

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Form 130-U The application is used by the County Tax Assessor-Collector (CTAC) and the Comptrollers office to calculate the amount of motor vehicle tax due. The application includes a motor vehicle tax statement section to document the following: the motor vehicle sales tax due on a Texas sale of a motor vehicle.
It can take roughly two to six weeks to get your title after paying off a car. The variables include time for your states processes and for the lienholder to send notification of the loan payoff.

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