The loan is paid off, but the lien is still on the title
Very common with older cars. The lender should have signed the lien release on the title or sent a lien release letter when the loan was paid. If you cannot find it, contact the lender (or the company that bought it) and ask for one. Colorado's duplicate title guidance says a lien release must be on the lienholder's letterhead (not required if the lienholder is an individual) and include the vehicle's year, make, VIN, the titled owner's names, the agent's signature, and the release date. With that, the state can issue a title that leaves the lien off.
The title itself is lost and there is a lien
If an active lien is recorded, Colorado lets only the lienholder or its agent apply for the duplicate title. So the order is: get the lien released, then get the duplicate. Both steps are explained on the Colorado DMV title page. Our no-title guide covers the rest.
You still owe money on the car
Then the lender has to be paid off before ownership can transfer cleanly. Call the lender and ask for a payoff amount and how they release the lien once it is paid. If the car is a total loss after an accident, talk to your insurer first; it may be handling the payoff. If what a car is worth as scrap is less than what you owe, the difference is still yours to pay.
What to tell us
When you ask for a quote, say there is or was a lien and where it stands. We will tell you what we need to see before we schedule a pickup. Then see the paperwork checklist for pickup day.