Secretary of State
Congratulations on owning your vehicle free and clear. Now that your loan is paid off, you should receive a "letter of lien release" from the bank or financial institution that financed your vehicle. This letter will include the Vehicle Identification Number (VIN) and state that the terms of the loan have been satisfied. The bank or financing company also may use a "bank stamp" and sign the face of the title to show that the loan has been paid and the lien agreement is terminated. In either case, you may choose to purchase a new title with the lienholder removed or keep the lienholder's letter with your title. Should you ever decide to sell your vehicle, you will have verifiable proof that the lien has been legitimately terminated. You cannot transfer ownership of a vehicle until the lien is cleared from the title.
If you financed your vehicle with a lender that participates in Michigan's Electronic Lien and Title (ELT) program, your title record is held electronically, and you do not currently have a paper title showing a lien. Once the final payment on your loan has been processed by your lender you will automatically receive a paper title mailed to you from the Michigan Department of State. Please make sure to provide your lender with your current mailing address to ensure proper receipt of your paper title.