Do You Need a Letter of Non-Interest for a Lien Release?

Introduction

• When preparing a lien release request package, it's essential to include a "letter of non-interest."

What is a Letter of Non-Interest?

• A letter of non-interest is an alternate document used when a lien holder cannot sign a lien release.
• It indicates that the lien holder no longer has any interest in the vehicle.

Why Use a Letter of Non-Interest?

• Sometimes lien holders cannot sign a lien release if the lien is old, charged off, or written off, and not visible in their system.
• A letter of non-interest helps bypass this issue by stating the lien holder's disinterest in the vehicle, even if it’s been sold or purged from their system.

Benefits of a Letter of Non-Interest

• It simplifies the process as the lien holder can easily verify their lack of interest in the vehicle.
• Increases the likelihood of receiving the necessary documentation to clear the title.

Additional Tips

• Include a return envelope with the letter of non-interest to avoid delays or the document being discarded due to lack of postage.
• Ensure all details are followed to avoid issues with obtaining a clean title.

Further Assistance

• For personalized advice, visit ActualHuman.com for live, one-on-one consultations with experts in this field.

Conclusion

• Check out other videos on our channel for more information on related topics to help resolve your issues.

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When we prepare the lien release request package to send to lien holders, we also include what's called a letter of non-interest. What is a letter of non-interest? Well, when a lien holder is requested to sign a lien release document to clear the lien off the title, sometimes if it's an old lien, if it's a charge-off, if it's a write-off, or if it's not in their system, they can't sign a lien release because technically they can't release something they can't see or that is not current.

Sometimes the clerk, administrator, or receptionist that's signing it says, "I can't see that it's released. I see that it's a charge-off, I see it's a write-off, I see it's bankrupt, I see that it's out of the system, but I don't see a release, so I can't sign this." However, a letter of non-interest is an alternate document that basically says, "We no longer have any interest in this vehicle," or "We don't have an interest in this vehicle." Maybe the bank sold off that loan to another bank.

But if they're listed on the title, they're the only ones that can sign off on that title. So if you provide them with a letter of non-interest, that's a lot easier to sign because they can look on their system and say, "We don't have an interest in this vehicle. It's a write-off, it's a charge-off, we sold that loan to another bank, it went bankrupt, it was not in our system, it's purged, it's voided."

By including that letter of non-interest, you're increasing your odds that you're going to get something back because if you just send a lien release, it's an official document. It looks official, says, you know, under penalty of perjury, sometimes has to be notarized. Many times that clerk or person at the bank may not be sophisticated enough to know that they need to sign that. But a letter of non-interest is a lot more likely to have somebody say, "Yeah, we don't have an interest in this vehicle, sign it, send it back."

As you know, we've said this before—it's important to send a return envelope with that document because you don't want them to throw it away because they don't have a stamp. So, a letter of non-interest and a return envelope is part of the process. Make sure that you follow all those details because leaving one of them out could be the difference between getting a clean title and still having a car you can't sell.

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