When you have a loan against your car, you may find it necessary to change the holder of your title at some point. The process of changing a lien holder will vary from one state to the next, but the general steps are the same. This may be necessary if you are refinancing your car or if the original title was incorrect in some way. Typically, you must pay a fee and fill out some paperwork.
Refinance your car loan. When you have a loan against your car, the lien holder will be the lender who currently holds your loan. When you refinance your loan, the new lender will pay off your original lender and will then become the new lien holder. In most cases, the title will be sent to the new lender and it will handle the process of changing the lien holder name for you.
Complete a title amendment form with the Department of Motor Vehicles or its equivalent in your state. With this form, you can change the names of the lien holder or the names of the owners of the vehicle on the title. This can be useful if the title was issued incorrectly with the wrong lien holder name on it.
Pay the filing fee to the Department of Motor Vehicles or similar organization in your state. Typically, this will be a nominal fee that you must pay at the time the title amendment form is turned in. For example, in Massachusetts in July 2011, you had to pay $25 to change the lien holder.
Mail the form to the appropriate office or turn it in personally. If you mail the form, include a check or money order for the correct amount required.
Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.