Removing a Lien in Wyoming
If you financed your car and are still making auto loan payments, chances are you have a lien on your car title. The title is in your lienholder’s name until you pay off the loan in full and record the lien release with your WY county clerk’s office.
What Is a Car Lien in WY?
Essentially, a lien is a legal contract that protects a lender, property owner, or service provider in the event they don’t receive full repayment.
So, your car lien is a security placed on your car title when you borrow money to purchase the vehicle. The car lien protects your lender, who becomes the lienholder.
Other Types of Liens
The most common type of car lien is the kind placed on your title when you take out a loan to buy your vehicle.
However, there are other kinds of car liens you may come across. For example, you might face a mechanic’s lien if you don’t pay for repair or towing services. Or, you might have a lien on your title because it was part of a divorce settlement.
These circumstances are individual to each person; therefore, you need to talk to your lienholder and county clerk’s office for instructions on how to proceed.
Who Are Wyoming Lienholders?
Your lienholder is the person or company who loaned you money to buy the vehicle. Generally, lienholders are banks, credit unions, and other financial firms, could also be car dealers or even individual people, depending on who issued your auto loan.
Your lienholder keeps your WY title until you satisfy the lien, paying off the car loan in full. Once you do that, you can apply to have the lien released.
Remove a WY Car Title Lien
When you make you final car loan payment, your lienholder will send you your car title and a lien release statement.
Once you receive your title and lien release statement, head to your county clerk’s office where the clerk will mark your Wyoming vehicle title as clear (i.e. no longer having a lien) and record the lien release. You won’t receive a new title; Wyoming recognizes the properly marked title as clean.
Because your county MIGHT have a slightly different process than your neighboring county has, it’s best to call your county clerk’s office to confirm you have everything you need before heading out the door.