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Removing a Lien in Montana

If you had your car financed and are still in the process of paying off your car loan, there may be a lien on your title. That means the car is not legally considered your property.

However, once your loan has been paid in full, you can have the lien released through Montana's Motor Vehicle Division (MVD).

What Is a Car Lien?

A lien is a way for a property owner or service provider to ensure he or she will receive full payment for what they provide. It is a form of collateral.

If you take out a car loan to buy your car, a lien will give the lienholder the legal right to repossess the vehicle should you default on your auto loan or cease making payments.

Who Is a Lienholder in Montana?

Typically, the lienholder is the individual or entity at financial risk should a loan or bill go unpaid. A lienholder on a car title is the person or company who issued the car loan. A credit union, bank, or other financial institution is usually the lienholder on a car title.

The lienholder's name may appear on the title, and the document will likely be in the lienholder's possession until the car loan is satisfied. The lienholder may also be referred to as the legal car owner until that time.

Removing a Lien from a MT Title

Once you have repaid the loan taken out on your Montana vehicle, you can apply to have the security interest removed from your title and receive a clean title in its place.

Your lienholder will submit to the Montana MVD's Title and Registration Bureau:

  • EITHER:
  • OR:
    • A security interest/lien release on letterhead, including:
      • A complete description of the title.
      • Lien information.
  • Once the information has been submitted by your lienholder, you will be able to apply for a new, lien-free title by submitting:

    • The original title.
    • A $10 fee.

    You may bring these items in person to your branch office, or submit them by mail to:

    Title and Registration Bureau
    302 N Roberts.
    Helena, MT 59620

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