How Can I Get a Title From the Bank Used as Collateral?

Titles to property, such as boats, recreational vehicles and automobiles, are often held by banks as collateral for loans. The bank establishes a value for the property through an appraisal and compares the value to the loan request. Loan approval is possible if the value of the titled property exceeds the requested loan amount. The bank will release the title after receiving all payments on the loan.

Instructions

1

Confirm that the title and loan are in your name. It is not possible for you to obtain the title if the loan is not yours. For example, a spouse may have obtained a loan by pledging the title to a motorcycle. In that case only the spouse can obtain the title. Exceptions are possible when the debtor is deceased and an estate is settling his affairs.

2

Review the billing statement if the loan and title are in your name. Determine the loan balance, and confirm it by calling the lender. Tell the lender that you wish to pay off the loan and retrieve the title offered as collateral.

3

Pay the payoff amount by sending a cashier's check or personal check. A money order or cash paid in person are other options. Obtain a receipt if paying in person.

4

Contact the bank's customer service department thee or four days after paying off the loan. This allows the time for the check to clear -- if you paid by check. Confirm that final payment was applied to the account, ending the balance. Request that the bank remove the lien placed on the title -- if it has not already done so -- and mail the title to you at your address.