What Is A Letter Of Non-Interest?

  • 2 min read

If you have a lien on your vehicle title that is old or is from the previous owner, you’ll want to get the lien released from the lender. When a lien is too old, or wasn’t yours, to begin with, the lender will not provide a lien release letter because the lien might not be paid off. Instead, you’ll want to send the lender a letter of non-interest.

What is a letter of non-interest?

A letter of non-interest is used by a lender to inform you that they no longer hold any security interest in your vehicle. A letter of non-interest is typically used when a traditional lien release letter is not applicable.

When is a letter of non-interest appropriate?

There are a variety of reasons why a lender may no longer have a security interest in your vehicle, those reasons may be:

  1. The lien is more than 10 years old
  2. The loan amount is more than the vehicle’s value
  3. You were not the original borrower (the loan is not yours)
  4. The lender is no longer in business and has transferred the lien to another company
  5. The lender is unable to locate the loan or lien records

Should I request a letter of non-interest in addition to a lien release letter?

Ideally, when requesting a lien release from your lender, you should also request a letter of non-interest. If the lender was bought out and the new company is not able to access your specific records to give you a lien release, they may not get it back to you. When requesting a lien release, always send or request a letter of non-interest just in case.

When it comes to a lien release, a letter of non-interest from your lender is typically sufficient for the DMV to remove the lien from your title.

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