It has recently come to my attention that a number of people have been facing the problem of clearing liens by dead lenders.  A lender should file a satisfaction of lien when they are paid off, but what do you do if they don’t, and the company is no longer in business?

This happens in the case of car loans and home loans.  If it is a car loan, you may be able to get relief from your Department of Motor Vehicles.  For home loans, it’s not that easy.

You have two main pathways. The first path is to identify a successor in interest to the lienholder, and get the successor to file a lien release. If that doesn’t work, you may have to file a court case asking the court to declare the lien no longer in force.

Either way, it is a frustrating and time-consuming process, and you have my sympathy if you are put in this position.

The case that I’m looking at now involves Avco Financial. If I come across good information of a successor-in-interest, I will post it in an update.   It appears at first Google that Textron bought Avco, then sold Avco Financial Services to Associates First Capital Corp.  Associates first Capital Corp was then purchased by Citigroup (Citi Financial Services).

If you are in Indiana and you have a problem with a defunct lien holder, feel free to contact me through my website, www.hoferlawindy.com.  If you are not in Indiana, I suggest you contact a consumer lawyer in your area through the National Association of Consumer Advocates at www.NACA.net.


By the way, Avco Financial was related to Avco Embassy Pictures, the company that produced, The Graduate, This is Spinal Tap, Escape from New York, and many more.