Removing a Lien in Minnesota
What Is a Car Lien?
A lien is a legal document that secures some type of collateral for a property owner or service provider, in the case that he or she does not receive full payment.
A lien on your car title will allow for the lienholder to repossess the vehicle, should you cease making payments or default on your car loan.
Who Is a Minnesota Lienholder?
The lienholder is the person or entity that would lose out, monetarily, from an unpaid bill or loan. In the case of a car title, your lienholder is the individual or business that issued the car loan. A bank, credit union, or other financial firm is usually the lienholder on a car title.
During the time the loan is being paid off, the lienholder's name will be on the title, and the lienholder may also be in possession of the document. The lienholder may also be referred to as the legal car owner until the loan is satisfied.
Remove a Lien from Your MN Title
In Minnesota, when there is a lien on a car title, the title is mailed to the car buyer, while a lien card is mailed to the lienholder.
Once you've paid off your car loan, you can have the lien released by bringing the following to your local DVS office:
- The vehicle title.
- The lien notification card, mailed out by the lienholder once the loan is satisfied.
- The card must either be:
- Signed by the lienholder.
OR - Accompanied by a notarized Notification of Assignment – Release or Grant of Secured Interest (Form PS2017).
- Signed by the lienholder.
- The card must either be:
Your lienholder must send out the lien notification card or the Notification of Assignment – Release or Grant of Secured Interest (Form PS2017) within 15 days of the final loan payment. If you lose your title, you must apply for a duplicate title.
The form, the current title, and a filing fee of $12 must be submitted to the Driver and Vehicle Services (DVS) Division to have your title reflect only the owners name with the lien removed.