MI · STATE PROCESS
Michigan: from final payment to clear title.
The Michigan guide below works one post-payoff title problem back through the state's documents and release process.
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- Title system
- Michigan's Electronic Lien and Title program is mandatory for financial institutions. Titles with participating financial-institution liens are held electronically until release.
- After payoff
- The lienholder is required to perform the electronic release after the loan is paid. Michigan says that once the release is completed, the Department of State automatically prints and mails a paper title to the owner.
- Lien release
- Electronic liens can only be released electronically by the lienholder; a paper lien-release letter cannot be used to remove an electronic lien. Paper-title loans can still be satisfied by a signed title or qualifying lien-termination letter.
- Owner action
- Give the lender your current mailing address before final payoff. For a paper title, keep the termination letter with the title or apply for a new lien-free title if you prefer.
- Timing
- Michigan's ELT FAQ says the Department of State automatically prints and mails the paper title to the owner the next business day after the lienholder completes the electronic release.