How To Remove A Lien From A Title Record – Lien Release

Understanding Vehicle Lien Removal Process
How do you get a lien removed from a vehicle title record? If you have a vehicle that is currently blocked from getting a title because you need to get a lien removed from the official title record, it’s very important to know how to go through that process. First of all, if a lien is on a title record, it doesn’t mean there’s money owed. It doesn’t mean that there’s still a balance owed. It might be owed but also it’s not required. In addition, even if there is money owed, it’s not certain that you can’t get that lien removed.

Examples of Successful Lien Removal
For example, there are many instances where even if there’s money still owed, you can still get the lien removed from the title record. So, you can get the title, you can sell the vehicle, you can process a transfer.

What is a Vehicle Lien?
What is a vehicle lien? A vehicle lien is a claim against a vehicle title for from a bank usually or a lien holder that makes that vehicle collateral for a loan. Now, a lot of people don’t realize this. The lien holder is not the owner of the vehicle. If you finance a vehicle from a bank, the bank is not the owner of that asset. They’re simply a lender or a lien holder.

How Liens Work on Vehicle Titles
What happens is they will place their name on the title to hold their position as a lien holder for collateral and that means the DMV can’t release the title. A vehicle title is a legal document. You’ve seen these before and it has the name of the owner on it as the legal possessor of the vehicle, but if there’s a bank that lent money on it, they’re also going to put their name on it to protect their interest.

The Problem with Paid-Off Loans
Now, if you paid off your loan to the bank, and we’ll talk about if you didn’t pay off the loan here in a minute, but if you did pay off the loan, what they’re supposed to do is sign the title, stamp it paid, mail it to you, and they’re also supposed to remove that record from the DMV database. However, most of the time, they don’t do that second part. They just sign the title, stamp it, and mail it to you. And if you lose it, now you have a problem because that record is still going to be in the database.

The Correct Way to Contact Lien Holders
If that’s the case, you want to contact a lien holder to have them remove it. However, it’s very important how you do this. You can’t do it by phone. You can’t do it by text message, fax, online, internet. You have to do it in writing. And we’ll talk here in a minute why. We have hundreds of clients over and over that contact us and say, “Look, I tried to call the bank. I called the lien holder and they said they couldn’t do it or they said they would do it and they never did.” That’s cuz you did it by phone. If you do it in writing, you’ll get your lien release.

Getting Lien Release When Money is Still Owed
Now, let’s talk about if the money is still owed. Maybe you stopped paying on a car a long time ago. Maybe it’s a charge off. Maybe it’s a write off. Maybe it’s what’s called a short sale. And you can get information on that below. How do you get the lien release? Same way. You do it in writing. What you do, and this is how we do it. You put together a package of documents that is an official lien release.

The Lien Release Package
The package. It’s a lien release, a letter of non-interest, an affidavit of facts, declaration of interest. You put that together in writing, printed, and you send it to the lien holder with a request for them to verify it.

Why Written Requests Are Essential
And it’s important to do it in writing because here’s why. Lien holders don’t have a dedicated lien release department. So if you call them up and say, “Hey, give me a lien release,” somebody’s got to figure out whose job it is to do that. And these are all people that do something else all day that they have a responsibility to get done. So if they drop what they’re doing to put together this package of paperwork, right, it might take them an hour or two to put all this together. It’s not their job. So they’re not going to do it. They either are going to tell you they won’t do it or they won’t do it. You probably are familiar with this because you probably got the runaround from the bank.

Making It Easy for the Lien Holder
But if you put that package together and send it to them, now it’s a different story. All they have to do is sign it and mail it to you. In fact, we put, you can see in this package, there’s envelopes in here. We even give the lien holder an envelope already written out to mail it back to you. In addition, put a stamp on the envelope. Why should you do that? Well, any work that that person at the bank has to do is one more reason they’re not going to do it. If they can’t find a stamp, they’re going to throw it away. If they don’t have an envelope, they’re going to just drop it. You got to do all the work for them. Even if there’s money owed, even if there’s not money owed, this is the way to do it. Getting a lien release to get your title cleared is extremely important.

Backup Option: Court Order Title
Now, if for some reason the bank doesn’t respond or they take their time or they just, you know, forget about it, then you have a backup option in that package that I held up here a minute ago. We also put together a magistrate title or a court order title or declaratory judgment depend on the jurisdiction. It’s a backup. So after a week or two, if the bank hasn’t responded, you can then take the package, bring it to your local court or mail it to your local court and they can sign it because the bank didn’t respond. The court order title is an override of that. It’s an override of the bank not performing what they’re supposed to do.

Summary of the Lien Removal Process
So that’s the process of getting a lien removed from a title record. If you have been instructed by your bank to go to a website to get the lien release and it’s not going to the right place or they tell you to call a title company, this is why. Because they don’t have people in their bank that’s trying to help you out because it cost them too much money.

Why Banks Don’t Clear Title Records Automatically
And you might even ask, why is it that they don’t clear from the title record when they sent you your title initially? Well, it’s money. For them to do that, somebody has to fill out some forms. That might take a half an hour, 45 minutes. Somebody has to get those forms to the DMV and pay the fee. It might cost them $100, $120 for all the cost of taking a lien off of a record. Think about that. For hundreds of thousands of cars, that’s millions of dollars they save by not clearing the lien record. And it puts the burden on you. But this is a way to get that done easily.

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Can You Get A Title For A Certificate Of Destruction Car Or Junk Parts Vehicle

Understanding Common Questions About Vehicle Title Issues
We receive numerous inquiries constantly regarding junk titles or parts only titles. In various states, these may be referred to as certificate of destruction or non-reparable designations. Vehicle owners have obtained these automobiles perhaps from Copart or IAA or alternative auction platforms. Or perhaps you purchased it from a private seller such as Facebook or Craigslist or maybe Offer Up. And what occurs is you attempt to obtain a title for the vehicle and you discover that at some point in the history of that vehicle, the VIN number has been reported as a parts VIN number or one of the other terms that previously was mentioned.

What These Designations Mean and DMV Rejections
What does that mean? Well, you probably got turned away from the DMV. They told you you can’t get a title. What does this mean? How can you get a title? Today we’re going to talk about all the details of these types of title recordings or title brands. What they mean, what you can do about it, how it happened, and what is the legalities of these parts vehicles.

Defining Parts-Only Vehicle Classifications
So what is a parts-only vehicle? As mentioned, a parts-only vehicle is one which has a designation on the title record that says the vehicle is only for parts. Sometimes it’s called a junk title. Sometimes it’s called a dismantle title. In Florida, for example, they call it certificate of destruction. In Texas, they call it non-reparable. In some states, they don’t call it anything, but the VIN number is just canceled. For example, these cars that are junk titles that come out of Washington state are simply sold with a bill of sale only. And many times the buyer doesn’t even know that there’s something wrong with it.

How Insurance Companies Create These Designations
So, how does this happen? Well, the way that this designation is added to a vehicle record, it’s done by an insurance company. When a vehicle is reported as a claim to an insurance company, a total loss claim, the insurance company is allowed to put a designation on the title. They could call it salvage. They could call it flood. They could call it recovered theft. They could also call it parts only. It’s up to the insurance company. They are the ones who put this brand label on the title. And they do it based on a number of criteria.

Condition vs. Damage Assessment Reality
It very rarely has to do with the amount of damage. Many of these vehicles that come out of Copart or IAA or one of the insurance auctions that have a junk or parts title are in very good condition, very little damage. Maybe it was a flood car that has a little bit of corrosion and the floorboards. Maybe it’s a car with no apparent damage.

Insurance Company Liability Concerns
First, let’s talk about why the insurance company does this. Obviously, when these cars sell at auction, they’re going to sell for less than they would if it was a salvage title. So, why would the insurance company shoot themselves in the foot and say, “We don’t want to get salvage title money for it.” All has to do with liability. What happens is when a vehicle is sold by an insurance company who paid out a total loss claim for the vehicle, the vehicle then is sold at auction. If that vehicle creates any harm or damage or injury to somebody even 5 or 10 years later, that person can go back and sue the insurance company for selling it in the open market.

Insurance Strategy to Avoid Future Lawsuits
So, the insurance companies have started to say, “Look, we don’t want these cars back on the road. So, let’s just put junk on it, sell it at the auction, we’re done with it.” In fact, they’re finding that the cars don’t sell for much less than they would if they put salvage on it. So, they’re not really losing that much money. So, why would a vehicle sell as a parts only if it’s in good condition? Why would the insurance company do that? Well, remember it all has to do with liability.

Hidden Damage from Flood Events
If the vehicle was a flood car, no collision damage, no impact damage, no physical damage, maybe you can tell it was a flood because of the mud line or some other criteria. The insurance company doesn’t know if when it was in the flood if things like the computers are shorted out, if the sensors for the anti-lock brakes were rusted, maybe the impact sensors for the airbags that are in the bumpers in the front and back and in the side, they were also corroded. So, let’s say somebody buys that car, they fix it up, they don’t replace those sensors, and the airbags don’t go off, somebody gets hurt, insurance company’s on the hook.

Long-Term Corrosion and Detection Issues
Sometimes these in these damages and these corrosion events don’t show up for a while. Maybe they look nice now, but because they were submerged in salt water or even freshwater, the corrosion might not occur for two or three or four years later. So even if they inspected the vehicle, they wouldn’t find it.

Recovered Theft Vehicle Examples
Also, an example of a parts only vehicle or certificate of destruction is a recovered theft. Let’s say a vehicle is stolen and after 30 days of the car being missing, the insurance company pays the claim to the owner. They give them their money for the car and then another month goes by and the car turns up. People are joy riding it. They get pulled over. They get arrested and the car comes back. Well, the owner doesn’t get the car back. Now the insurance company has the car and they resell it at auction.

Unknown Component Theft Issues
Well, what they don’t know at the insurance company is were the airbags taken out of the car? You know, airbags are worth two or three or four thousand dollars each. So, sometimes car thieves will take out airbags. If there’s five airbags in a car, that could be 10 or fifteen thousand dollars that they could sell in the black market. Insurance companies won’t know that. They don’t want to take the time to spend a thousand or two thousand dollars inspecting every vehicle to see if everything’s good. They just bring it to the auction and dump it. Pennies on the dollar.

Why Good Condition Vehicles Get Junk Status
So that is why many vehicles that have a junk title or parts title or certificate of destruction title are in good condition because the criteria the insurance companies use is not based on condition, it’s based on liability.

Federal Restrictions on Junk Title Vehicles
So what can you do about this vehicle? If you purchase one, if you have one, what can you do to get a title? Well, let’s take a look at what the rules are and how you can get a title. The short answer is first there is no way to get a title unless you get that junk status removed from the title record. As long as that junk parts record is in the record system, no state in the country, no matter where you go, is allowed to get a title. It’s in a federal system called the National Motor Vehicle Title Information System. That’s known as the NMVTIS.

National System Database Restrictions
So, the designation on the title record bans that VIN number from any state issuing a title. In fact, every state has connection to the national system. And if you go to try to get a title, they’re going to type it in. They’re going to look it up. They’re going to say, “No, this car is banned.”

Court Petition as the Only Solution
So, how do you get it removed? The only authority that can remove it is the magistrate. What is the magistrate? That is the county court where you reside. You can file a petition to ask the court in your county to remove that designation from the vehicle. Why would they do that? Well, they don’t really have too much of a what they call a dog in the fight, so to speak. They don’t really care that much about it. They just want to go by what your petition is asking for.

Court Decision Factors
What are they going to consider in factors in deciding that? Well, they’re going to consider the condition, also the year, the history of the vehicle, you, the applicant, what their jurisdiction says, what their experience is with these vehicles. And really, it’s a personal opinion. The magistrate or judge can look at it and say, “Yeah, I’m going to, you know, there’s nothing wrong with this vehicle. I’m going to let this person get a title for it.” The problem is you will never know in advance if they’re going to say yes or no like any other court case. It’s totally subjective.

Requirements for Title Attempt
So if you have a vehicle with a certificate of destruction or non-reparable or junk title, the only way you can even try to get a title is to first petition the court to have that removed from the title record. If you don’t make that effort, you have zero chance of getting a title. Can’t happen. It’s a federal law.

Success Rate Expectations
So, what are your chances if you do it? Well, no one’s going to know in advance, but based on polling and asking our clients, it’s about a 50/50 chance. If you file a court order title package, you got about a 50/50 chance. Is that good or bad? I don’t know. For some people, it’s better than nothing. If you have a vehicle that’s worth, you know, three thousand with a junk title or twenty thousand with a salvage title or regular title, then it’s worth it because it’s kind of like would you go to the casino and if you had a 50/50 bet to make twenty-five thousand dollars, you’d probably do it.

Required Court Documents
So, if you do decide to do a court order title, what do you do? What do you need to file? Well, in most jurisdictions, there are four documents that need to be filed. Now, keep in mind, these are not pre-made forms like you find at the DMV. Courts do not have standard forms for every kind of case they handle. They handle hundreds or thousands of different types of cases for different people, and they don’t have one standardized form for every case. So, you have to create these documents with all the wording from scratch.

Document Details and Requirements
Those documents are a petition of ownership. You have to petition the court saying, “I want to be the owner. I wanted to get a title.” The second document is an affidavit of facts describing what the facts are. The third document is a declaration of interest saying you’re not aware of anybody else trying to claim an alternate interest and then also standard title application. So, you have to prepare all those. You can get more details on how to make up those documents at our website cartitles.com.

Court Contact Limitations
Remember, you cannot call the court to get more info. If you call the court and say, “Hey, I want to do a court order title.” They’re going to have no idea what you’re talking about because they don’t have names for all their different cases. For example, somebody might have a court case saying, “My neighbor’s dog bit me on the ankle and I need to get stitches and I want them to pay for it.” You can’t call the court and say, “Hey, what is your procedure for my neighbor’s dog bit me on the ankle and I want to get stitches case.” They don’t have separate cases for every specific type of scenario. So, you have to do this on your own. The court can’t help you give instructions on how to do this. You have to just show up with the documents and file them.

Processing Time Variables
Another question people ask, how long does it take? Well, it really depends on how busy the court is in that moment during that week. We have a client we deal with all the time for different types of court documents and they happen to be in a county in Florida and sometimes when we file cases they get it back in three or four days. A month later they could file a case and get it back in five or six weeks based on how busy they are. So you’re never going to know in advance how long it’s going to take. You just got to get it filed and let them do their thing.

Filing Location and Method
Where should you file them? Well, every county has a specific court. Could be called civil court, circuit court, superior court, magistrate court, etc. There’s different names for it. Some counties have more than one court, and you have to know which one to file it in. Also, when it comes time to file them, do not bring the documents in person to the court. Always do it by mail. There’s a lot of good reasons for that. You’ll have bad luck if you bring it in person.

Court Appearance Requirements
And that brings up another question. Do you have to go to court? Normally, you don’t have to go there. This is an administrative process that is done behind the scenes in the office. You have to file the documents, let them do some research. They might email you. They might call you to get information. They might want copies of things like a picture of the VIN number, but everything is usually done remotely. Sometimes when they’re done, they want you to come in to the to the excuse me, to the lobby and have you sign a form, but that’s usually when the case is done. It’s not a big production. It’s not a big like law and order Jack McCoy type court case. It’s an administrative process.

Summary and Key Takeaways
So that’s an overview of junk parts only titles. The most important thing is before you can even start doing anything, you have to get that removed from the title record. You have to get it cleared from the title record. And the only way to do that is through a court process. More information on that you can get on our website cartitles.com. We also have options for document preparation. If you want to have us do that for you, you can do that. We also have options for filing assistance. We even have one-on-one consultation and advice. So, if you have a specific case you want to talk about, one-on-one video call with myself. You can click the link, schedule a time, and we can do a personalized review of your vehicle, of your VIN number, and of your case.

Purchase Recommendations and Value Enhancement
The most important thing is if you have not purchased a non-reparable junk title, we don’t recommend buying it because it’s going to be a lot of work. If you already have one though, it is worth spending a little bit of time attempting to get that removed because if you can get it removed, you will enhance that vehicle’s value by thousands, if not tens of thousands of dollars. We had a client a few months ago who got it removed and his vehicle value went from five thousand to thirty thousand just because of that removal of the brand. So, it is it is a valuable method, a valuable activity to pursue to try to get your title.

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State Crackdowns On Out Of State Titles From Montana LLCs

The Rising Enforcement of Cross-State Registration Laws
HERE we go again with additional information about another instance where out-of-state titling and registration is becoming enforceable. Frequently, individuals believe that if they want to register their vehicle in a different state because it’s more convenient, less expensive, or to circumvent something in their home state, they can get away with it. One of the most prevalent methods currently is the entire Montana LLC loophole. Previously, it was Vermont, but states are becoming aware of this practice.

Connecticut’s Bridgeport Crackdown Results
AND here’s an example where in one municipality in Connecticut, Bridgeport, which isn’t a large state but is one of the bigger cities in Connecticut, during one month of conducting a crackdown, they discovered 5,000 vehicles that were registered out-of-state. Those individuals received fines, penalties, and some vehicles were seized.

How Authorities Track Out-of-State Vehicles
SO how do they accomplish this? Well, we’ve discussed this in previous videos. Currently, it’s simple for them to do it. In this situation, they’ve contracted a private investigative agency, a private company to perform what’s called ALPR, automated license plate readers, where they have cameras that are positioned throughout town on vehicles driving around, on stop signs, on street poles, in parking lots that are recording license plates thousands upon thousands upon thousands per minute. This information goes into a computer system and they determine if there’s an out-of-state plate, it flags it.

Distinguishing Residents from Visitors
NOW to be fair, if you’re on vacation visiting, they’re not going to flag you for being out-of-state. However, if they observe that same license plate repeatedly every day going to the same parking lot at 8:30 in the morning or every day driving down the same street, they know you’re not on vacation visiting your Aunt Sarah. They know that you’ve resided there and you’re evading the state regulations.

The Investigation Process
THEY’RE going to look up that plate, find out who the owner is, then they’re going to conduct research on whether that owner has connection to Connecticut, and they’re going to send you a summons. How do they accomplish all this? They start out with an ultimate goal to identify people who are failing to pay local car taxes because their wheels are not correctly registered in this city.

Connecticut’s Specific Tax Requirements
AND this is something in Connecticut that occurs frequently because of sales tax. People want to avoid sales tax. Per Connecticut law, anyone who moves from or purchases a car from another state has 90 days to register and they have to get their taxes paid. If you are already living in Connecticut, then 90 days started when you first move there. It doesn’t start when you buy your car. In most cases, there are lots of households that have not done so, and in some cases it might be less expensive to remain registered elsewhere.

Understanding Sales and Use Tax
REMEMBER the tax is not just a sales tax. It’s called a sales and use tax. So if you use the vehicle in another state, then you have to register it there. That’s why you see on large 18-wheeler trucks what’s called apportionment plates where if the truck is used in many different states, they apportion the taxes among the different states. So if you use your vehicle primarily in the state where you reside, you have to pay taxes there, even if you bought it somewhere else, even if you registered it somewhere else.

Penalties and Consequences
SO make sure that you’re not getting caught up in one of these situations because they’re going to penalize you. And if they find out that you did this for some other purpose, like to evade registration or inspection or title documents, they might even have additional penalties besides just the taxes and the interest and the fines that go on top of it.

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What Are The Easiest States To Get A Car Title

The Hidden Danger of Out-of-State Vehicle Registration Schemes
If you’re ever questioning whether it might be unwise to use some kind of workaround or out-of-state method to obtain a title for your vehicle simply because in your state it might be too difficult or might be too costly, here’s the reason. There are what’s called ALPRs. In this piece they call it license plate cameras. ALPR stands for automated license plate readers. It’s not just a camera that takes a picture. It reads the digits off the license plate and then runs a trace on that plate. And there are hundreds and thousands of them all over the place.

The Extensive Network of License Plate Surveillance
You’ll never see them. They’re hidden in parking lots. They’re on taxi cabs. They’re on lift vehicles. They’re on police cars. They’re on the side of the road. And as you drive by, these ALPR readers will capture every plate that goes by. And some of them are on private property. If you’re a private property owner, you can actually put an ALPR on your property and get income because you’re generating data.

How Government Agencies Track Vehicle Movement Patterns
And what happens is the government agencies, law enforcement, DMVs, tax authorities, revenue departments, they’re buying up this data to find out what cars are driving by their areas. And if they find that there are out-of-state vehicles that keep passing back and forth every day or every week for weeks and months at a time, they’re going to figure, well, that’s not just somebody on vacation visiting our town. That may be somebody who improperly registered a vehicle in another state because they wanted to avoid taxes, avoid inspection, avoid smog, whatever it is.

The Investigation and Enforcement Process
And they’re going to look into it and they’re now they know where you go because you drive by there. They’re going to arrange to have you pulled over and they’re going to do an investigation. And already just in the state of Denver, they’ve arrested 300 people. And they’re going to do more. Now that they see it worked, they’re going to do more. And many times the vehicle may not be stolen, but it might be one that has some type of title problem that was glossed over or papered over with a fake title.

Common Scenarios Leading to Title Problems
It may be something where a person lives in the area but didn’t want to go through the title process in their state because it’s too hard or it’s too much bureaucracy or the DMV gave you the runaround so they said I’ll just go to an easier state or I’ll do some kind of fake title loophole. They’re catching up to these people.

Insurance Fraud Detection Through ALPR Data
They may also find that your insurance isn’t with the right address. For example, when you get insurance, you have to tell your insurance agent where you are garaging your vehicle. Now, it doesn’t mean you have to have a garage. It means where you’re domiciling your vehicle, where you park it. And if you say you’re parking it in one town, but really you live somewhere else, you might be able to get a cheaper price on your insurance premium because some places are more dangerous. They’re higher risk of crime, theft, accidents.

How Insurance Companies Use ALPR Data Against Claims
So, you might get cheaper insurance, but if you’re really not parking it there, then they can match up your insurance records. Or even worse, if you have a claim, if you get in an accident, the insurance company can look at this ALPR data and find out that no, you didn’t have your car parked over here in the safe place. You were using it in the dangerous place, and they can deny your claim.

The Accessibility of ALPR Technology to Private Citizens
One of the companies is called Flock Cameras. You can look them up. You can order one for your subdivision, for your neighborhood, for your HOA, and it doesn’t have to even control access through a gate. You can just collect the data. Look, when you’re driving in public, you are in the public realm. Your information is not necessarily private because you’re out in public. Your license plate number is out in public.

Government Enforcement Through Public Data Collection
And these agencies are using it to enforce making sure that people aren’t doing shady things with titles or registrations or trying to evade proper procedures for things like vehicle inspection, safety inspection, smog, sales tax. So, think twice before you use some type of shady or questionable loophole to get a title because at some point it may come back to haunt you and it’ll cost you way more money. In some cases, they’re impounding and seizing vehicles from people that did something improperly.

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How To Get Out Of A Lien Release With Negative Equity

Understanding Vehicle Financing and Short Sales
So, what is a car short sale and how does it compare to a voluntary repossession, a loan modification, or lean release? Well, a vehicle loan is a financing instrument that’s used to get a vehicle purchase funded when you don’t have all the money. So, if you’re buying a $40,000 car and you only have $3,000 in cash, you would get a loan for the difference. If later on it’s determined that you may have trouble paying for that loan or if you have difficulty covering the payments or if you owe more than it’s worth, you can do several things.

Available Options When Facing Payment Difficulties
You can do a loan modification with your lender and we have an example on the screen of that. You can do a voluntary repossession, which is terrible because it ruins your credit. And you’re still going to owe the difference. So, let’s say if you bought that car for 40,000, you finance 40,000 and then two years later you want to do a voluntary repo. It might only be worth 20. You’re still going to owe probably 35 and you’re going to do the repo. They’re going to sell it for 20 and they’re going to send you a bill for the other 15,000. So, it’s not going to save you that much. They’re just going to hit your credit and they’re going to garnish your bank accounts.

Loan Modification and Car Short Sale Alternatives
You could also do a loan modification where you can contact a lean holder and maybe get them to adjust the terms. You can also request what’s called a car short sale. What this does is it’s a package of paperwork you can put together that shows what your current value is if it’s only $20,000, you can ask the lender, “Let me sell it for $20,000. Let me out from under this out of equity, negative equity, upside down, whatever you want to call it.” Sometimes they call it being underwater in the vehicle.

Short Sale Process and Requirements
And the lender will let you sell it for a fair value. You’re not going to sell it cheap. You’re not going to sell it to your cousin for, you know, 15,000. You’re going to have to sell it in the open market and to show all kind of documentation that you don’t have, you know, a million dollars sitting in the bank. You don’t make $200,000 a year. You’re going to have to prove that it’s a hardship.

Lender Policies and Potential Outcomes
And what they may do, it’s up to the lender, is let you sell it to get out from under it. And then that negative equity, that balance, they may either wave part of it. They may let you make payments on it. They may defer it, they may convert it to a personal loan, unsecured loan based on the lender’s policy, but also based on how good of a package you submit to them. And this is an example from Ally Bank, one of the largest lean holders of what they do for loan modifications.

Lender Program Variations and Documentation
You have a lot of options. Different lenders have different programs. They don’t always make them public. They don’t always make them conspicuous because they really don’t want a lot of people doing them because it costs them money. So, you may have to just submit a standard package of documents. And the link below will give you examples of those to request that your lender allow you to sell the vehicle to get out from under that payment where if you have too much negative equity, you can’t even trade it in because the dealership can’t absorb or digest that much negative equity on a vehicle when even when they’re selling you a new vehicle.

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