Lenders file liens on property to ensure repayment of debt – if your home, land, vehicle or other property is under lien, the lender can take the property back in the case of a defaulted loan. Once you've repaid the debt, responsibility for providing a release falls to the lender, whether in Kentucky or elsewhere. However, if the lender fails to do so or you need a specific lien release, you may need to take action.
General Lien Release
Call the lien holder and inquire about the absence of your lien. Request a copy of the lien; be prepared to provide proof of the payoff. If this fails, move on to the next step.
Mail, email or fax a request for a Release of Lien form to the Federal Deposit Insurance Corporation's Division of Resolutions and Receiverships, or DRR. This written request must be clear and detailed. Kentucky residents must mail or fax the DRR Customer Service Center In Schaumburg, Illinois. Include thorough proof of payoff and your personal contact information with the request.
Allow 14 business days for the DRR Customer Service Center to complete your request.
Specific Lien Release
Download and print form 12A503, the Application for Specific Lien Release, from the Kentucky Department of Revenue's website. This is a request for a specialized sort of release. Kentucky's Department of Revenue considers specific lien releases only for taxpayer-owned property worth twice the amount of taxes owed, property being given up to the commonwealth or property with disputed ownership.
Complete the form. Answer all questions clearly and attach the requested information, including a legal description of the property, proof of payoff and information to establish the value of the property.
Mail the completed form and any attachments to the Department of Revenue's Division of Collections in Frankfort, Kentucky – the address is noted on the top of the form.
Allow 10 business days for the Department of Revenue to complete your request.
Provide the Federal Deposit Insurance Corporation or the Kentucky Department of Revenue with as much information as possible, including copies of paid-in-full notes, to speed up processing times and get your lien release faster.