Your lienholder went out of business. How to clear the lien.

Alabama

Under Department of Revenue rule 810-5-75-.21, when the lienholder recorded on the title is no longer in business and a replacement title is needed, the owner may submit an owner affidavit citing the VIN and stating the lien is satisfied and the lienholder is out of business, an unopened envelope sent to the lienholder's last known address by certified mail with return receipt, and evidence that the lien was paid. Travel trailers, manufactured homes and vehicles over 12,000 pounds GVW need a surety bond instead. Separately, a recorded lien on an ordinary vehicle is treated as satisfied 12 years after the security agreement date (4 years if the vehicle is 12 or more model years old) unless the lienholder filed a continuation on form MVT 5-64.

Alaska

Alaska says a lien release must come from the lienholder in writing. The DMV requires a lien release before it issues a duplicate or clear title. For questions about unusual situations, call the DMV office at (907) 269-5551.

Arizona

Under A.R.S. 28-2134(D), the Arizona MVD may satisfy the lien on its records if the owner provides proof the loan was paid in full and an affidavit describing with particularity the steps taken in a diligent search for the lienholder and stating the lienholder could not be found. The statute sets no waiting period. Ask an MVD office which affidavit to use.

Arkansas

Arkansas DFA says an owner who claims a recorded lien is satisfied must provide a lien release document. The Office then notifies the lienholder. If the lienholder does not object within 10 business days, the Office issues the replacement title to the owner. DFA lists a form called Statement of Fact for Issuance of a Bonded Title. Ask DFA at 1-501-682-7076 whether it applies to a lienholder that is out of business.

California

The California DMV says that when a lienholder is closed or does not respond, the owner should send a certified letter requesting the release to the institution's address on file, wait 30 days, then send the DMV the unopened returned letter with a completed Statement of Facts (REG 256) and a motor vehicle bond for the vehicle's current retail value from a California-licensed bond business. Mail these to the Registration Operations Division in Sacramento. The DMV expects a response in 4 to 6 weeks. The DMV also keeps a Financial Institution Locator listing lenders that closed, merged or were acquired, with possible successors.

Colorado

For electronic titles where the lienholder has filed for bankruptcy or ceased operations, C.R.S. 42-6-126(2) says the applicant must either post a bond with the DMV director in a reasonable amount the director sets, or wait until the period of the lien or encumbrance expires. The statute sets no dollar amount, affidavit or waiting period.

Connecticut

Under Conn. Gen. Stat. 14-188(d), a lienholder that has disappeared and cannot be located by the debtor is deemed to have released the lien once evidence satisfactory to the DMV commissioner is filed, and the statute sets no waiting period. Section 14-188(e) also treats a lien held by a financial institution that no longer exists (and that gave no proper release) as dissolved not earlier than ten years after it was perfected, if successor institutions cannot find the debtor's records. The DMV says that for a loan over 10 years old with no release letter, the owner can complete Section 2 of Form H-6B or the Motor Vehicle Ownership Affidavit (Form H-115) instead.

Delaware

Delaware law says that if a lienholder has not satisfied a paid lien within 60 days, the Secretary named in the statute, after due and timely notice to the lienholder and on convincing evidence kept on file, may satisfy the lien. It also says a lien recorded for a firm that has dissolved or gone out of business becomes null and void if it stays of record for more than 3 years from recording. Contact the DMV Help Desk at 302-744-2500 or DMVCustomerService@delaware.gov.

District of Columbia

D.C. Code 50-1211 says that if a lienholder did not mark the certificate satisfied and cannot be found, or the marked certificate is lost or destroyed and a duplicate is issued, the Recorder may release the lien on evidence satisfactory to the Recorder that the lien was satisfied. The statute sets no affidavit form or waiting period. The DC DMV's duplicate-title page accepts a letter of financing stating the lien is satisfied, a certified loan agreement stamped paid, or a title stamped with the release.

Florida

Under Fla. Stat. 319.24(6), if the original certificate cannot be returned but evidence satisfactory to the department shows that all liens are satisfied, the owner may apply on the department's forms and pay the fee for a duplicate certificate showing no liens or encumbrances. The lienholder that cannot provide the title must also cover the cost of the duplicate.

Georgia

Georgia DOR says the owner first searches for a merger or name change, then gets a letter from the appropriate state regulatory agency confirming the lienholder is no longer in business or is unlicensed; if the lienholder is unlicensed, the owner also sends a certified letter with return receipt to the lienholder's last known address. The owner submits the returned undelivered letter, the regulator's letter, the title and the $18.00 title fee. The statute (O.C.G.A. 40-3-56(b)) says an individual need not submit a release if the owner presents certification from the appropriate regulatory agency that the lienholder is no longer in business. This does not apply to individual lienholders, merged companies operating under new names, or entities not regulated by a state agency.

Hawaii

Honolulu says a lien satisfaction letter may be submitted in place of the lienholder's endorsement on the title. It directs such questions to the Motor Vehicle Section at 808-768-4325 or mvinfo@honolulu.gov.

Idaho

For title questions, call the ITD Customer Contact Center at (208) 584-4343.

Illinois

625 ILCS 5/3-205 has no provision for a lienholder that cannot be found or no longer exists. Ask the Illinois Secretary of State Vehicle Services Department how to proceed.

Indiana

The Indiana BMV lien release page says that if a financial institution lienholder is no longer operating, the vehicle owner should contact the local court for an order directing the BMV to remove the lien. IC 9-17-5-1 has no provision for a lienholder that cannot be found. For other questions, call the BMV at 1-800-457-8283.

Iowa

Iowa DOT publishes a bonded certificate of title for people who lack proper title documents. The state sets a cash or surety bond at one and a half times the vehicle's value. Cash is held for three years. Vehicles worth $1,000 or less and 12 model years or older need no bond. Iowa DOT Vehicle Services is 515-237-3110.

Kansas

K.S.A. 8-1,157 has no provision for a lienholder that is out of business or cannot be found. The Division says it cannot issue a duplicate title while a lienholder appears on the record without a lien release. If a lienholder simply fails to release, you can file a lienholder complaint (TR-156). For other situations, contact the Title and Registration Bureau.

Kentucky

The Kenton County Clerk says that if the lienholder was a financial institution that was bought or merged, the clerk can accept a lien release from the new entity, but requires proof of the relationship between the two entities. For a dealership lienholder, it points owners to the Kentucky Motor Vehicle Commission, and it also mentions checking Secretary of State business filings or petitioning Circuit Court.

Louisiana

Under La. R.S. 32:708(B)(2), OMV can issue a duplicate certificate of title showing the lien cancelled when the owner shows they cannot get a duplicate or release because the lienholder is no longer in existence and the secured party of record has filed a termination statement, along with the other conditions the statute lists.

Maine

Maine law lets the Secretary of State accept a surety bond instead of withholding a title when it is not satisfied about ownership or the absence of security interests; the bond is set at 1.5 times the vehicle's value, runs about 3 years, and protects prior or later owners and lienholders. The BMV publishes a Motor Vehicle Title Surety Bond form. Contact Title Services for lienholder-specific questions.

Maryland

The MVA's duplicate-title page says that if a lien is still listed on the title, additional documentation from the lienholder may be required. If the lienholder has closed or cannot be found, contact the MVA directly.

Massachusetts

Massachusetts law lets the registrar issue a title with a bond instead of withholding it when there is doubt about ownership or undisclosed security interests: the bond is 1.5 times the vehicle's value, held for three years, and protects prior lienholders and later buyers (c.90D section 12). Contact the RMV before relying on this route.

Michigan

MCL 257.238 and 257.241 set the lienholder's release duty but do not describe a substitute route when the lienholder cannot be found.

Minnesota

Under Minn. Stat. 168A.20 subd. 5, an owner who has paid the lien but cannot get a release can send the lienholder a certified letter (return receipt requested) and, if that fails, present the returned letter to DVS; a security interest on a passenger automobile may then be cancelled seven years after its perfection date. DVS also offers a no-proof-of-ownership title application when the lien release cannot be obtained: for vehicles over five years old the applicant may buy a surety bond of 1.5 times the vehicle's value, held three years, and the title carries a BONDED brand.

Mississippi

DOR's motor vehicle FAQ says to contact Motor Vehicle Services at (601) 923-7200 when a lienholder is no longer operating. State law also treats a motor vehicle lien older than eight years as satisfied and released unless the lienholder recertifies it each year, and lets the Department withhold a title or accept a bond of 1.5 times the vehicle's value (held three years) when there are questions about undisclosed security interests (Miss. Code 63-21-23).

Missouri

Under RSMo 301.640, a lien on a purchase of $6,000 or less is treated as satisfied six years after perfection unless the lienholder is a large motor vehicle finance company (net worth over $100 million) or a depository institution, the certificate notes future advances, or a new lien was perfected. A Missouri bonded certificate of ownership (RSMo 301.192) is limited to older, low-value vehicles and still requires a notarized release from any lienholder of record, so it does not bypass a missing lienholder.

Nebraska

Under Neb. Rev. Stat. 60-164, if the title holder cannot locate a lienholder, the lien may be discharged once ten years have passed, 30 days after the owner mails written notice by certified mail, return receipt requested, to the lienholder's last-known address and presents proof of the mailing. The DMV also offers a bonded certificate of title (bond of 1.5 times the vehicle's value, $50 fee, three years) for owners who cannot provide a properly assigned title. The DMV page on this title does not mention lien releases.

Nevada

The Nevada DMV's bonded title page covers owners who cannot obtain a title or reach a previous owner. The bond is 1.5 times the vehicle's MSRP, kept three years, with affidavit forms VP 271 and VP 272. The bond protects prior lienholders, but the page does not tie it to lien releases.

New Hampshire

New Hampshire law lets the director of motor vehicles withhold a certificate of title or issue one conditioned on a bond of 1.5 times the vehicle's value, held three years and protecting prior owners and lienholders (RSA 261:10). RSA 261:27 does not address a lienholder that cannot be found.

New Jersey

For a lienholder that is out of business or cannot be found, the MVC directs applicants to its Duplicate Title Unit at 609-633-8275.

New York

The only proof the DMV's lien-removal page accepts is a Notice of Recorded Lien (MV-901) signed by an authorized lienholder officer or a notarized letter from the lienholder on official letterhead.

North Carolina

Under G.S. 20-58.4(e), an owner who cannot get a release can show the Division whatever evidence is available that the debt was satisfied, together with the owner's sworn affidavit that it was. The Division then treats the request under subsection (e2): if it is satisfied the documents are genuine it sends notice to the secured party's last known address and can cancel the security interest if the secured party does not object within 15 days.

Ohio

The Ohio Revised Code lets a clerk cancel a lien notation on the automated title system if the clerk is satisfied the secured party duly discharged the lien but did not cancel it (ORC 4505.06). Take proof of payoff and any records of the lender to a county Clerk of Courts title office, or call the BMV Title Support Section at 614-752-7671.

Oklahoma

If the secured party cannot provide a release, Oklahoma law lets the owner submit an affidavit that the security interest has been satisfied and explaining why a release cannot be obtained, along with supporting documents Service Oklahoma requires, a title application, and fees. Service Oklahoma then issues a new certificate of title without the satisfied lien. Ask Service Oklahoma which supporting documents it wants for a defunct lender.

Oregon

Oregon DMV's rule on releases of interest (OAR 735-020-0075) lets DMV accept a copy of a release when the original cannot be obtained after all reasonable efforts to get it. For a lender that is out of business, contact DMV Customer Assistance at 503-945-5000 and bring proof of payoff and records of your attempts to reach the lender.

South Carolina

South Carolina's electronic lien law says a recorded lien is effective for twelve years from perfection unless the lender continues it, so an old lien from a defunct lender may have lapsed. Ask an SCDMV branch how to get a clear title for a lien that is unreleased or lapsed, and bring proof of payoff.

Texas

TxDMV's bonded title page says you cannot get a bonded title if you are unable to obtain a release of lien or letter of no interest from a recorded lienholder of 10 years or less. When a lienholder cannot be located or is out of business, it points owners to a lawyer to seek a court order awarding ownership free and clear of the lien, and says TxDMV should not be named as a party to that lawsuit.

Virginia

Virginia DMV says that if the lender is unavailable you submit evidence that it went out of business (certification from the State Corporation Commission, the Motor Vehicle Dealer Board, or another licensing authority), documentation of your release request (such as returned certified mail), and a notarized statement identifying the vehicle by VIN, make, and year confirming the lien was satisfied. Separately, Va. Code 46.2-642 lets an owner who cannot get a release show DMV whatever evidence is available that the debt was paid, along with a sworn statement that it was paid.

Washington

If the lienholder's company is out of business, Washington DOL says you can petition a Washington superior or district court to remove the lienholder, giving proof of full payment and the vehicle's year, make, model, and VIN. If the lienholder is a Washington vehicle or boat dealer, you can instead file a complaint with DOL.

West Virginia

West Virginia law provides that if a release from the lienholder cannot be obtained, the owner may show the DMV whatever evidence is available that the debt was satisfied, with a sworn statement that the debt was paid and the certificate of title (W. Va. Code 17A-4A-7). Ask the West Virginia DMV what evidence it accepts for a defunct lender.

Wisconsin

Wisconsin's statute has no owner affidavit or court-order route for a lender that is dissolved or unresponsive. Section 342.22(3) lets WisDOT remove a security interest from its computerized records 10 years after perfection (20 years for recreational vehicles, 8 for truck tractors). The statute says that removal does not affect the security agreement. Ask WisDOT what it will do for a defunct lender.

Not verified yet: Montana, North Dakota, Pennsylvania, Rhode Island, South Dakota, Tennessee, Vermont. Ask the state title agency directly before paying for a bonded title or a court order.