How Long Does a Lien take to remove from the record

[repncalgary]

Hi guys,

I'm planning on buying a vehicle from someone. They had it financed with Honda Financing. The guy has paid off the lien on the vehicle but (a few days ago according to him) and has received paperwork from Honda with a bill of sale.

When I do a search it still shows up as having an active lien. How long does it take for the lien status to change? And also is there a way I can just call up honda to see if their is a lien on the vehicle?

Thanks.

[mr2mike]

Not sure with a dealership but for sure with a bank, you can go in and I would suggest it. Make a meeting with a bank rep and do the deal with them present. Thus insuring the lein is paid fully.

I would think you could go to Honda and talk with them. See if you do the deal at the dealership, they'd allow it? Or even go in there and have them verify the lein is paid off and GET IT IN WRITING on Honda letter head... not a copy either, an actual letterhead and original signature.

Essentially, you need to pay off the company holding the lein FIRST. Then the owner gets the rest of the cash.

Sorry not too helpful.

[you&me]

Originally posted by repncalgary
Hi guys,

I'm planning on buying a vehicle from someone. They had it financed with Honda Financing. The guy has paid off the lien on the vehicle but (a few days ago according to him) and has received paperwork from Honda with a bill of sale.

When I do a search it still shows up as having an active lien. How long does it take for the lien status to change? And also is there a way I can just call up honda to see if their is a lien on the vehicle?

Thanks.

Paperwork? As-in a lien release letter?

If that's the case, you're most likely in the clear. Have him take the lien release letter to a registry and have it removed that way. You'll be safe to pay him and register the car after that.

[BrknFngrs]

If he just paid it off a few days ago it seems strange that he would already have the release letter. Each vehicle I've purchased has had liens on it and it always takes a few weeks to get the release from the lender.

[bignerd]

I don't think you can take a letter to the registry and remove a lien, unless you are the holder/registrar of that lien(i.e. the lien letter could be faked).

Pretty sure Honda will remove the lien from their end within a few weeks. I know when I worked at the bank we had a log in to the registry system where we could register and renew liens on personal property, so I am assuming we could release them too.

When we paid out our Honda we had to mail a cheque to somewhere in Ontario, and I can guarantee you they wait until your cheque clears before giving a release letter or clearing the lien. We also never got any paperwork or a bill of sale, just a statement of account at some point stating we owed nothing and thanking us for our business on Honda letterhead. This was about 5 years ago though.

[Cos]

If you have a legit lean release letter I think they have 60 days or something to process it off the 'title' of the car. I would take a copy of the release letter, call honda finance, and verify the lein is paid in full.

[oilerfan4lyfe]

If the loan was through a bank, the bank usually waits 5-10 business days after the loan is paid in full before requesting a discharge (which takes another day or two to process).