Removing a Lien in Mississippi
If you’re currently making payments on an auto loan, chances are you have a lien on your car title. Basically, this means your lender—the person or company who financed your car—is the legal vehicle owner.
However, once you complete your car loan payments, you can apply for a clear title with your county tax collector’s office and the Mississippi Department of Revenue (DOR).
What Is a Car Lien in MS?
A car lien is a legal claim on your vehicle.
When you obtain an auto loan, your lender—or lienholder—places a lien on your car. This lien acts as financial security for the lender in case you fail to make loan payments. Because the lienholder technically owns the vehicle until you finish paying off the loan, they can repossess the car if you stop making payments.
Other Types of Liens
On this page, we’re focusing on the most common car lien—the kind placed on your car title until you pay off an auto loan—but it’s good to know about other kinds of auto liens, too.
For example, you might have a lien placed on your car if:
- You don’t pay for vehicle services like repairs, storage, and towing.
- You use your car as collateral in a transaction.
- It’s part of a divorce settlement.
Because these situations are different for each person, you should discuss your options with your lienholder and an MS DOR agent.
Who Are Mississippi Lienholders?
When it comes to car liens for auto loans, lienholders are the people or businesses responsible for issuing the car loans. Generally, lienholders are banks, credit unions, or financial firms but other types of businesses and individual people who lend money for purchasing vehicles could be lienholders, too.
Even though you have possession of your vehicle, your lienholder keeps the car title and is the legal vehicle owner until you pay off your loan and they release the lien. After that, you can apply for a clear title—one with the lienholder’s name removed.
Remove a Lien from an MS Title
After you pay off your auto loan, your lienholder will send you the properly completed car title and a lien release letter.
Now, you can apply for a new title by submitting:
- A completed Application for Replacement Certificate of Title (Form 78-006).
- The properly signed car title, indicating your lienholder is no longer the official owner.
- A lien release letter.
- The $9 MS title fee.
You can take the items above in person to your county tax collector’s office or mail them to:
Mississippi Department of Revenue
Motor Vehicle Licensing Bureau
P.O. Box 1383
Jackson, MS 39215
Once everything checks out, you’ll receive your new car title and officially own the vehicle.