This request can be made through the DMV or directly to the lender. A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends.Learn how payoff letters work. The lienholder must print the letter on the official letterhead of the loan company, and an authorized officer must sign the letter. The steps below are standard instructions for filing a Satisfaction of Judgment, and sending those documents to the appropriate parties. This secure online system allows a motor vehicle title to be transferred electronically, from private person to private person. Did you pay cash for the cost of the vehicle in its entirety (no bank, lien holder, or credit union cashier's check used for funding)?.