Many people wonder what happens to their actual car title during duration of the time it takes them to repay their loan. After you get approved for a title loan in Phoenix, Arizona, you must hand over your vehicle title to a loan agent.

This effectively makes the lender as a lien holder. This means that if for some reason you are unable to payback your loan in full, the Phoenix lender will take possession of your vehicle. The title is then sent over to the Department of Motor Vehicles where the title is then updated and sent to the lender to hold while you have an outstanding balance. Most states will process this lien on the same day, depending on when it is brought in to them.

Once the title has made it back to the lender, he or she will place the title in a secured file to hold until the loan is successfully paid in full.

If a borrower successfully pays off the loan as agreed, the lender will then sign the lien that it was paid in full, and then it will be mailed to you within a ten day period. Then you will need to take the title to the Department of Motor Vehicles and request that the lien be taken off of the title and mailed back to you. There will be a small fee to remove the lien on your title.

If you are not able to repay the Phoenix title loan, the title remains in the possession of the lender who will then sell the vehicle and use that money to pay off your loan amount. In this case, you do not get the title or the vehicle back. Because this options is more difficult on the borrow and lender, the loan agent will work with the borrow to make sure that the loan is paid off appropriately. We understand the stresses of financial hardships and will offer extensions in many cases.