When you purchase a vehicle in Phoenix, if you financed it, the financial institution probably required that they hold the title to the vehicle until you pay off your loan in full. When the bank receives the title, they will put a lien on your vehicle. This lien gives them the right to claim the vehicle if you do not make your payments to the bank as you agreed to when you signed the papers. You will sign papers when you get your money stating that they have this right so it’s very important that you read these terms and conditions thoroughly before you sign.

You have made all your payments on the loan and now you want to pay it off and get your title. It’s exciting when you see that title in your name only; you feel a sense of accomplishment and ownership. When you go to the bank with your last payment, you will not receive the title the same day. You will receive your original loan paper with your signature on it stamped with “Paid in Full” for your records.

The bank will need to release the lien they have on your vehicle. In order to do that, they will need to sign the title releasing the lien they have and then mail the title to you. Once you receive it, look it over and make sure that everything is correct and then you can take it to one of the Phoenix Motor Vehicle Department locations and have the title put in your name and the bank lien removed. When the bank signed the lien, this gives the Motor Vehicle Department permission to take their name off of the title so you can put your name only on the title.

You will need to send your insurance company proof that the lien is now off the title and you have satisfied your debt. The insurance company can update their records and remove the lien holder information on your records. While a lien is on your vehicle title, the insurance company will send the financial institution any information pertaining to your insurance coverage, including any cancellation notices sent to you. Most financial institutions will require that you carry auto insurance on a vehicle if they have a lien on it. This ensures that they will get their money back if you crash the vehicle.

Once a lien is removed from the title, you will receive it in the mail within ten days. You can store the title in a safe place for future reference; if you sell the vehicle or if you need to use the vehicle to secure another loan in the future.