At LoanMart we can place a lien on your car’s title when using your vehicle as collateral. Liens are placed on vehicles that have been used as collateral. A lien is a right to keep possession of property belonging to another person until a debt owed by that person is paid off.
What Is A Lien For?
The title of the car that you own is in your name, but if there’s a lien on the title, the car title loan lender such as LoanMart adds their name to your title to possess legal rights on that vehicle. The good thing with us is that we don’t keep your vehicle while you are repaying the loan. Instead, we let you drive it while making the payments.
Adding a lienholder to a car title is done so the lender can use your car as collateral to ensure repayment on the title loan.
If you are approved for a loan, LoanMart will hold the title to your car and be signed on as the lienholder until the loan is paid in full. Terms of repayment are set before the loan is signed, and your input is a valuable part of setting up your loan agreement. We always prefer to customize the loan terms for our customers so they can repay the loan easily without any anxiety 1. We want to make this work for both of us.
Here are the specifics of how our process—and every lender’s process—works:
An Unsecured Loan vs. a Secured Loan
There are two different categories of loans. All lending falls into one of the two categories of either secured loans or unsecured loans.
An unsecured loan is not backed up by any type of collateral but rather based on the credit score or decided trustworthiness of the borrower. Since the loan is not directly connected to any collateral, if you default on the loan, the lender can’t automatically take any of your property (though it is still possible). Without any asset tied to the loan, a lender would consider this a greater risk. Therefore, interest rates on these types of loans are considerably higher. Because of the process to get these loans are greater, funding is not as speedy as people usually need. The most common types of unsecured loans:
- Student loans
- Personal loans
- Credit cards
A secured loan, however, is connected to a particular piece of collateral that is usually something valuable like a vehicle or a house. Some of the most common types of secured loans are mortgages and car title loans.
The lending company or bank will hold the deed of the house or title of the car until the loan has been paid in full, including interest and any additional fees. Other assets like stocks, bonds, or valuable personal property can be put up to secure a loan as well. Secured loans can offer much higher borrowing limits than unsecured loans, though just because you may qualify for a larger amount, doesn’t mean you should take it. You still need to be careful to only borrow what you can afford. The most common types of secured loans:
- Mortgage on a house
- Financing on the new purchase of a car
- Auto title loans like those offered at LoanMart
Understanding Collateral and Liens
When going with a secured loan, it’s important to understand these terms. A lien is any official claim or charge on a piece of property, known as collateral, for payment of a debt owed or for some agreed upon service. A lien is usually in the form of a legal document that is signed by the one who is owed money in addition to the one who owes the money and is agreeing to the amount to be repaid. With a lien comes the right to sell the property if the contract is broken, in order to recover the money if necessary.
Putting a lien on a piece of property is a way of legally enforcing collateral through claiming partial or complete ownership of it. A lienholder is a legal owner of an item used as collateral. If the repayment terms on the lien and therefore on the loan are met, the lender will release the lien. After that, they will no longer have any legal claim or ownership to the property.
For example, with car title loans your automobile is used as collateral to secure the funds you need. LoanMart would then be the lienholder on the automobile and our name will appear on your title. Once the loan has been paid in full, the lien is completely released, along with the ownership of the car back to you. There is no need for you to worry about us staying on your title after the title loan is repaid.
Turn Your Car into Cash
The idea of someone using the money paid against an owned home (equity) is not as easy as it should be. This has made people turn to an asset –their cars- that they may have never thought of before. It is easy to secure some money out of your cars, which are investments, and we can help you do it. You can use the title of your car as collateral to get a loan from LoanMart1. In other words, you can get access to money from your vehicle while retaining ownership.
At LoanMart, we can use your truck, car or any other vehicle model to help get a loan for yourself1. Helping people who need money during emergencies gives us satisfaction. The process of securing a loan using your car is very easy. All our team members, including our service representatives, are always there to help you know about the process and give you the best option for whatever financial situation you might be in.
LoanMart will retain the lien until the loan is fully paid. Terms are often tailor-made for different needs, so that you can repay the loan comfortably. This is a way of making sure that we both benefit from the transaction.
So, your vehicle’s title is missing. You’re probably panicking a little bit and your mind is all over the place, especially when your loan is within your grasp. Don’t worry! LoanMart works to take care of and help our customers and you are no exception.
First off, let’s see if there are certain places that you could check or double-check to see if the title was just out of eyesight:
- Glovebox (Glove compartment) or the various storage spaces of your vehicle
- Filing cabinets or office folders filled with important paperwork
- Home safe
- Lockbox or safe at a bank/post office
- A certain area where extra income and keepsakes are personally kept
If you still haven’t been able to find your title, rest easy, because while it may seem frustrating, LoanMart can help you with the process of obtaining a new copy of your vehicle title, so that you can get back on track in obtaining a car title loan.
How To Add A Name To A Car Title
If there is no lien on your title and you are shown as the sole legal and registered owner, you can add anyone to the title. Your state BMV or DMV will have specific instructions, but they usually have a title request form for you to fill out along with the information for the person you want to add.
There is a fee for making the changes, but you should receive your new title the same day. This process only works if you want to add someone and not replace your name with another person’s name. That is considered a transfer or a sale and is a bit more involved than just adding another owner.
How to Remove a Lien on a Car Title
There are benefits to owning a car in full, without a lien on it. It may be cheaper to insure the car, or you could use the title to borrow money with title loans in Louisville. Whatever your reason for wanting the lien removed from a car title, the only way to make this happen is to pay off the car loan, storage fees, or mechanic’s fees in full. Keep making payments until you have finished your obligation to the lien-holder.
Adding your Name Back to a Title
If you have paid off the lien in full, you may be wondering how to add a name to a car title. For many lenders, this process is initiated the moment you make your final payment. They will usually send you a confirmation of the final payment in the mail with further instructions on how to remove them from the title. If you think your loan is paid off and you haven’t received word from the lender, contact them to see what needs to be done.
Depending on your state, there may be a form to fill out to have the lien-holder removed. You can then take the form—along with the documentation from the lender and original title—to the DMV or BMV to update the title. There is a fee for doing this. Also, some lenders use an electronic system to update this information and may work with your state DMV to let you request the new title online.
When you receive your new title, you’ll see that the lien-holder section is blank. This means you have a lien-free title and can use it to secure loans or even get discounted rates on your car insurance.
Final Lien Removal Tips
Since the first step to removing a lien is to confirm the loan is paid in full, check your account balance and contact your lender if you see any discrepancies. Even a few dollars can keep the title from becoming yours, and the payoff amount doesn’t always match what your last statement showed as the remaining balance. Once it’s down to zero, the lender should work with you to get the title placed solely in your name.
Car Title Loans
Car title loans use your car’s title as collateral for a loan. Car title loans in Tulsa and other cities are a solution for those who need quick money to handle unexpected scenarios. Car title loans allow you to access money that you need while keeping your car in the process. At LoanMart, we give you an opportunity to turn your car into real cash1. Our process is simple due to our online application system where we can lend you money without having to hold these things, you can be on the way to financial security as soon as this week. Many customers find it satisfying that they can keep driving their cars without any restriction while making monthly payments. Get started with a car title loan today with LoanMart!