Lost Title and an Old Lien on the Same Car

Applying for a replacement title first may not get you far. WAC 308-56A-200 says a replacement title goes only to owners of record, and DOL says that if there is still a loan, the lienholder must apply. Both legal and registered owners matter here, because all legal and registered owners shown on the title must sign the Release of Interest.

So the lender’s signature is what opens things up. DOL’s page on removing a lienholder says it takes an Affidavit carrying the lienholder’s notarized signature, or the current title with a releasing signature. If the title is lost, that points you to the Affidavit.

1. Find your proof

   Look for a paid-in-full letter, your final statement or bank records. Your credit report may also show a closed account.

2. Contact the lender’s lien department

   Say you need a notarized release on DOL’s Affidavit of Loss/Release of Interest. Give them the VIN and your name exactly as on the record.

3. Put your request in writing

   Keep a copy and note the date. RCW 46.12.675 says a secured party must release its interest when obligations are met and assign the title.

4. If they do not respond

   A secured party that fails to release within ten days after proper demand, where the failure causes loss, is “liable for one hundred dollars”, under the same statute. It is a modest sum, but it shows you have the right to ask. Mention the statute in a second letter.

5. Then sign your own part

   You, and every other owner of record, sign too. A signature not on the title must be notarized or certified.

Once that Affidavit is complete, you may not need a replacement title at all. DOL says an Affidavit of Loss/Release of Interest or an Affidavit in Lieu of Title can stand in for a lost title at sale. Ask a licensing office if a replacement would help you more, and compare the steps in our replacement guide.

DOL gives two routes.

• Petition a court

  You can petition a Washington superior or district court. DOL says you will need to show the court proof that you paid the lienholder in full. The order must name the year, make, model and VIN. WAC 308-56A-320 adds that a security interest is removed only if the order says so, so check the wording.

• File a complaint, if it was a dealer

  If the lienholder was a Washington dealer, DOL says you can file a complaint. Ask DOL what you need for it.

First try to find out what happened to the lender. A bank or credit union that closed or merged may have a successor holding its loans. We have not verified a specific process for tracing one, so ask the licensing office what proof it accepts. Weigh the cost of court against what the car would bring, and ask a licensing office if a simpler option exists for your case. An attorney can tell you how much a court petition is likely to involve.

A bond can also come into play if you use the ownership in doubt route. WAC 308-56A-210 says a bond is required when the record shows an existing lien.

• Do not write “lien paid” on anything yourself. WAC 308-56A-215 says alteration or erasure voids a title unless satisfactory documentation is given.
• Do not sign the lender’s name, or sign an affidavit saying there is no lien when there is. RCW 46.12.750 makes false statements a class B felony.
• Do not sell the car and hope the lender never asks. Selling without following the title rules is illegal under RCW 46.12.520.
• Do not stop paying a current loan because the car died. See owing more than a wrecked car is worth if the numbers are upside down.

We need one of: a Title, an Affidavit in Lieu of Title, or a Junk Vehicle Affidavit. Tell us about the lien when you call, so we can check where things stand before sending a truck. Since a lender is on record, we want to hear from you first. Call us at (206) 941-0612 and tell us what you have, and we will tell you whether we can take it. Our paperwork guide has the wider picture, and how it works covers the pickup.