If you own a motor vehicle in Texas, you may need to obtain a lien release letter to prove that the lienholder’s interest in your vehicle has been satisfied. In this blog, we’ll explain the process for obtaining a lien release in Texas and how to use Form VTR-266.
A lien on a motor vehicle means that a lender or another party has a financial interest in the vehicle and can legally claim it if you don’t make regular payments. Once you have fully paid off the loan, the lienholder must release their interest in your vehicle by issuing a lien release letter.
Steps to Getting a Lien Release in Texas
Step 1: Pay off the loan
Ensure you have paid off the loan in full and received proof of payment, such as a receipt or a paid-in-full statement.
Step 2: Locate the lienholder
Research the address for your lienholder, specifically the payoff address. Most lenders will have a designated PO box or address for this. We also recommend identifying at least two more addresses, such as a corporate office and registered agent. Your state’s Secretary of State database may help find these addresses.
Step 3: Mail the lien release request
Once you have identified the addresses, mail a letter requesting the lien release, including the year, make, model, VIN, your information, and form VTR-266. This is the official Texas lien release form and is required to be signed by the lienholder. Complete the vehicle information section of this form, then send it to the lienholder to complete their final portions. They may also need proof of identity, so it may be a good idea to include a photocopy of your driver’s license or state ID.
Step 4: Wait for the lien release letter and completed form VTR-266
The lienholder should issue the lien release letter within a few days, up to 30 days. If you don’t receive the letter after a reasonable time, follow up with the lender to ensure it’s been received and processed.
Step 5: Get a new title
Once you’ve received your lien release letter and VTR-266, take these documents, along with your photo ID and fees to the Texas DMV in your county to apply for a new title and remove the lien from the title record. This process can be done in person or by mail.
To sum it all up, obtaining a lien release in Texas includes paying off the loan, locating the lienholder, mailing the proper forms, and getting a new title upon receipt. Remember, until this process is completed, the lien will remain on the title record.