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Once you pay off a lien on your car, the lienholder will release it from your title. If you have an Electronic Lien on Title (ELT), you need to contact the lienholder to have it released. For liens recorded on the paper title itself, the lienholder will: Complete the lien release on the title.
When your loan is paid off, you will need to update the paperwork with the DMV or other state office. ing to Shinn, your lender will send you a lien release in states that require you to file to get your title. It should take no more than 30 days, so get in touch with your lender if it moves too slowly.
The lienholder signs the title in the lien release section, then sends it to the owner. At that time the owner may decide to apply for a new title that does not show the lien or to keep the title as is.
The lien release must be filed with the county recorder to cancel the previously filed lien instrument. The lien release is different than a lien waiver because it discharges an already filed lien, while a waiver surrenders the right to file one in the first place.
Most vehicles model year 1986 and newer must be titled in Georgia. When a title is required (see later discussion of cases when an identification is not needed), a vehicle cannot be registered (tagged) until a title application has been processed. In most cases, titling is the first for the new resident or a new owner.
The easiest way to remove a lien from a car title is to send a lien release letter to your lender requesting that the lien be removed. Typically, the lender is supposed to stamp and send you your certificate of title once your loan is satisfied, but we find that often this is not the case.
Once you pay off your loan, your lienholder will send you an official release of lien letter. You'll take that to your state BMV or DMV (or, in some cases, to your local city/town clerk's office) along with your current title and apply for an updated title.
Because the vehicle is not completely paid for, sometimes the seller or lender will be unsure whether to put the title in the new owner's name or not. Georgia law requires that the vehicle be titled in the purchaser's name even if there is a lien (loan) against it.