Title Liens Can Occur When Your Property Is Collateral for a Loan
A title lien in Ohio can mean you have a loan secured by a car, allowing a creditor to repossess the vehicle if you default.
Liens are legal claims on a piece of property, which is why they are attached to titles. It is usually placed when the property owner fails to pay a debt. This process secures payment and gives the creditor a legal claim to the property until the debt is paid.
An application must be submitted to the Ohio Bureau of Motor Vehicles (BMV) to file a lien on a vehicle. Details about yourself, the car, and other relevant information are required. Depending on the nature of the lien, you may also need to provide supporting documents, such as a court order or a notarized lien document.
Your application will be reviewed by the Ohio BMV, which will determine whether the lien is valid. The lien will appear on the title of the vehicle if approved.
For example, online title loans work by allowing a person to borrow money off of the available equity in their vehicle. If you obtain approval, a lender places a lien on your car title and removes it after repayment. Failure to repay the loan can result in lenders repossessing your vehicle because of the lien.
While this may sound harsh, this is the risk of most secured loan options! On the upside, title loans can be simple and convenient to apply for in Ohio. You can potentially get a title loan if you are struggling with your finances and need money fast. Learn more about how title loans work in Ohio, and begin your application for a title loan by filling out the pre-approval form or calling to speak with a title loan agent at LoanMart.
What Are the Requirements for an Auto Title Loan with a Lien in Ohio?
The good news about online title loans in Ohio is that they can be hassle-free to apply for. Unlike traditional bank loans, which impose strict criteria, title loans can be relatively simple. The approval process should be quick as long as you meet the initial requirements and submit the correct paperwork. A qualified borrower can access cash within one business day after applying.
For an online title loan in Ohio, you will need the following:
- Be an Adult at Least 18 Years of Age or Older
- Have a Car Title in Your Name
- Have a Car With Positive Equity
- Show Proof of Consistent Income
As mentioned above, having a car title in your name is vital during a title loan application because the entire loan process depends on one. Liens are placed on vehicle titles during this agreement as insurance for the lenders. They can legally repossess your car if you fail to pay your loan back. However, this is typically the last resort any lender wants to take. Contact your lender if you have a title loan and are struggling to make payments.
Positive equity in a car means your vehicle is worth more than what you owe to a dealership or bank. Applying for a title loan may be best if your car is nearly or fully paid off. You need positive equity to obtain approval for a title loan because your loan amount can depend on this number.
Proof of consistent income means you have regular money from an outside source. It is not necessary to work a job to show proof of income. Social Security benefits, settlement checks, or self-employment are all acceptable proof of income.
What Are the Risks to a Title Lien in Ohio?
Any financial agreement you enter into will come with risks. With a title lien in Ohio, your property can be repossessed if you fail to pay your loans back on time. Furthermore, defaulting on a loan can result in a lowered credit score, which is difficult to restore.
Apply for an Online Auto Title Loan in Ohio Today
Filing a title lien in Ohio means taking out a loan using property, like a vehicle, as collateral. With an online title loan, you can use your car’s title in exchange for funding from a lender. This option can be excellent for people who struggle with their credit scores but need to access money quickly.
Begin your application for a title loan by filling out the pre-approval form or calling to speak with a title loan representative.