Did you pay off your car but lose the lien release letter? Learn how to clear old bank liens so you can sell your junk car in Wisconsin.
The “Zombie” Lien Problem
You bought a car in 2015. You financed it through a local credit union. You paid it off in 2020. The car died in 2026. You go to sell it to {businessInfo.name}, and we tell you: “Sorry, the DMV says there is still a lien on this car.”
How? You paid it off! This happens constantly. When you paid off the loan, the bank sent you a piece of paper (a Lien Release). You probably threw it in a drawer or lost it. You never took it to the DMV to update the title. Technically, the bank still co-owns your car.
Here is how to fix it so you can get cash for your car.
What is a Lien?
A lien is a legal claim. It means the lender has the right to repossess the vehicle if you don’t pay. Until the lien is “released” in the DMV system, the vehicle cannot be transferred to a new owner (or scrapped).
Option 1: The “Clean” Title (Ideal)
If you paid off the loan and brought the proof to the DMV years ago, you likely have a “Clean Title.”
- Look at your title.
- Look at the “Lien Holder” section.
- If it is blank or says “NONE”, you are good to go.
Option 2: The Signed Title Release
Sometimes, the bank simply signs the original title.
- Look at the front of your title.
- Under “Lien Holder”, is there a signature or a stamp from the bank with a date?
- If Yes: That counts! The title acts as its own proof. You can sell the car to us.
Option 3: The Separate Letter (The Missing Link)
If the title lists a lien holder and there is NO signature/stamp, you need a Lien Release Letter. This is a document on the bank’s letterhead that includes:
- Vehicle VIN.
- Owner Name.
- Statement that the loan is “Satisfied” or “Paid in Full.”
- Authorized Signature.
To sell the car, you must hand us the Title AND this Letter.
How to Get a Replacement Lien Release (Step-by-Step)
If you lost the letter (or never got one), you need to get a new one.
1. Identify the Bank
Look at the title. Is it “Chase”? “Wells Fargo”? “Mom & Pop Credit Union”?
- Note: Many small banks have merged or changed names over 15 years. You may need to Google “Who bought [Old Bank Name]?“
2. Call the “Lien Release Department”
Do not call the general customer service number. Ask for the Title Desk or Lien Release Department.
- Say this: “I have an old payoff from [Year]. I need a lien release letter faxed or emailed to me for VIN #…“
3. Visit a Local Branch
If it is a local bank, walking in is faster.
- Sales bankers can often print a “paid in full” letter on the spot if you bring your ID.
4. The “Bank Went Out of Business” Nightmare
If the lender no longer exists (and wasn’t bought out), this gets tricky.
- You must contact the FDIC (Federal Deposit Insurance Corporation). They keep records of failed banks.
- You can file a request specifically for a lien release from a closed institution.
Can We Buy It With an Active Lien?
NO. We cannot buy a car with an active, unreleased lien.
- Why? Because if we scrap it, the bank could sue us for destroying “their” property.
- Exception: If the lien is from a “Title Loan” company and you want to use the junk car cash to PAY OFF the lien, we can sometimes arrange a three-way transaction (Payoff amount goes to lender, remaining cash goes to you). This is case-by-case.
Summary
- Check your title for a listed bank.
- Look for a signature/stamp releasing it.
- If missing, call the bank immediately.
- Do not wait until the tow truck arrives—get this sorted first!
Once you have that paper, {businessInfo.name} can turn that old debt-free car into instant cash.