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In Colorado, both the buyer and seller do not need to be present to transfer a car title, but the title must include all required signatures from the seller, buyer, and any lienholders.
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.
Once youve paid off your car loan in full, the lender also called the lienholder should contact your local Department of Motor Vehicles (DMV) to release the lien. Once the lien is released, they relinquish their right to repossess your car.
How do you get a lien removed from a car title? Once your car loan is completely paid off, obtain a car title lien release from your lender so your state BMV or DMV can put the car title in your name.
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.
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For liens filed in Colorado: The lienholder on the title itself must sign the lien release or may be released on a separate lien release letter. The name of the lienholder on the letter must match the name of the lienholder printed on the face of the title.
For most Americans, your lender will possess the title for the duration of the loan. When your loan is paid off, your lender will send the lien release to the DMV. The DMV or other state office will then send the updated title to you. This process can take longer than in a title-holding state.
Once you have the vehicle identification number (VIN), you can check the state Department of Motor Vehicles (DMV) records to find out who holds the title. These records tend to be searchable online. The record should indicate whether theres a lien on the car, and if so, the lienholders name.

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