Removing a Lien in Oregon
What Is an Auto Lien?
A lien is similar to an insurance policy for lenders, service providers, or property owners. It protects them against the chance that they will not receive full payment for what they are selling.
A lien on your Oregon car title will give the lienholder the opportunity to repossess your car, if you are unable to continue making payments.
Before that process is initiated, however, your lienholder or the OR DMV must notify you of the situation.
Who Is an Oregon Lienholder?
The business or person who would take the hit financially if a loan or bill goes unpaid is usually the lienholder. The lienholder on your Oregon car title is the individual or company who issued your car loan – most likely a credit union, bank, or other lending institution.
Lienholders in Oregon will keep the title until your loan has been paid off. Their name will also appear on the document until you apply to have the lien released.
Removing a Lien from an OR Car Title
Once your car loan has been paid in full, you will be able to remove the lien from your Oregon car title. Your lienholder must sign off on and mail your title to you within 15 days from receiving the final loan payment.
You will then have 30 days to remove your lienholder's name from the document by applying for a new title at the Oregon Driver and Motor Vehicle Services Division.
To apply for your new title, bring to your local OR DMV office:
- The title sent to you by your lienholder.
- If your lienholder does not sign a release of interest on the title, they must sign and submit a separate Lien Release (Form 735-524).
- An Application for Title and Registration (Form 735-226).
- The $77 title transfer fee.
- The Oregon DMV will ONLY accept payment in the form of cash, money orders or checks.
- If applicable, take the necessary steps to renew your registration, which may include having to pass an emissions inspection.
NOTE: If your lienholder has sent you a release of interest but NOT your title, you must also complete an Application for Replacement Title (Form 735-515) and pay additional fees.
Information can be submitted in person to your local DMV office, or mailed to the OR DMV at:
1905 Lana Ave NE
Salem OR 97314
The OR Driver and Motor Vehicle Services Division will mail you your new title within 5 weeks. The process may take longer during peak times of the year.