Removing a Lien in Connecticut
If you are still making car payments on your vehicle and you financed your car, there may be a lien on your title. This means that your title will be in someone else's name, and some decisions regarding your car may not be in your control.
Once you've completed your car loan payments, you may get the lien removed from your title with the Connecticut Department of Motor Vehicles (DMV).
What Is a Lien?
A lien is a type of legal safety net. It is a document created with the intent to ensure a property owner receives full payment for a piece of property from a buyer.
A lien on a Connecticut car title is a facet of a car loan. It allows for the lienholder to repossess the car should the buyer default on or cease to pay his or her loans.
A car title lien can also give a lienholder the right to make certain decisions regarding the vehicle, such as the level of car insurance the buyer must have.
Who Is a Lienholder in CT?
A lienholder is the person or corporation responsible for writing the car loan. Oftentimes, the lienholder is a bank, credit union, or other financial firm. The lienholder is also referred to as the legal car owner until the time when the buyer finishes paying off his or her car loans.
While the vehicle is being paid off, the lienholder will typically be in possession of the car title. The title will most likely include the name of the lienholder.
Removing a CT Car Title Lien
Once your car loan agreement is fulfilled, you do not have to apply for a new title. The Connecticut Department of Motor Vehicles requires the lienholder to sign off on the title and send it to you, and/or provide you with a lien release letter on the their letterhead attached to the title.
Replacing a Lost Title
If you lose your title and need to replace it after having the lien released, bring the following to your local DMV office:
- A completed Application for Replacement Certificate of Title (Form H-6B).
- A lean release from your lienholder.
- The release must be written on letterhead paper from the lienholder.
- Payment for the $25 title replacement fee.
If the date on the lease is over 10 years old, and you can not find your lienholder's current contact information due to:
- A changed company name.
- The lender going out of business.
- The information is unavailable for another reason.
You must submit a completed Motor Vehicle Ownership Affidavit (Form H-115) in place of the lien release.
All required documents and fees can also be submitted by mail to the CT DMV at:
Department of Motor Vehicles
60 State Street
Wethersfield, CT 06161
Motor Vehicle Ownership Affidavit - H-115
Submit to the Connecticut DMV when you need to verify ownership of a vehicle you don't have a title or lien release for.