Buying vehicle(s) with liens on title ?

dereksbicycles

dereksbicycles

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Did you ever do that before? What is your experience and would you do it again?

Here is an example. Let's say that I buy a vehicle with agreement to make monthly payment for 2 years. I won't get title until it is paid off. After 1 year, I fall on hard time. I don't want a repo. I would rather sell it. You'll basically be paying off my loan and you will get title and vehicle.

I've seen few ads where people are in monthly payment plans, but fall at a hard time. Therefore, they decide to sell at a loss rather have it reposed.

I was just wondering what procedure, if any, you had to go through if you bought a vehicle on lien?

I may be interested at one of those vehicles. They seem to go for cheap because people are worried about it being reposed. A repo would be very, very damaging to someone's credit history.
 
Not even one bank will let you get title without Lien on it. You WILL get title, but with lien on it. It is no big deal. Once it is paid off, the lender is required to send you and DMV the letter that they lost interest in your vehicle. I have done that many times, and I don't see issue with it. I still have Lien on my 15 years old Cherokee EVEN though it was paid off 7 years ago and I don't care cause I know that bank won't screw with me.

Can't wait to get the lien release letter from my bank, will happen before 2013 ends.
 
dereksbicycles said:
Here is an example. Let's say that I buy a vehicle with agreement to make monthly payment for 2 years. I won't get title until it is paid off. After 1 year, I fall on hard time. I don't want a repo. I would rather sell it. You'll basically be paying off my loan and you will get title and vehicle.
Click to expand...

Ahhh, hate to sound so negative. But if any person who falls on hard times. decided to sell the vehicle to prevent repossession. I know for damn sure, they will not be paying off that remaining note. They will take the money and run.
 
dereksbicycles said:
Did you ever do that before? What is your experience and would you do it again?

Here is an example. Let's say that I buy a vehicle with agreement to make monthly payment for 2 years. I won't get title until it is paid off. After 1 year, I fall on hard time. I don't want a repo. I would rather sell it. You'll basically be paying off my loan and you will get title and vehicle.

I've seen few ads where people are in monthly payment plans, but fall at a hard time. Therefore, they decide to sell at a loss rather have it reposed.

I was just wondering what procedure, if any, you had to go through if you bought a vehicle on lien?

I may be interested at one of those vehicles. They seem to go for cheap because people are worried about it being reposed. A repo would be very, very damaging to someone's credit history.
Click to expand...

they can't sell a car since bank owns it
 
diehardbiker said:
Not even one bank will let you get title without Lien on it. You WILL get title, but with lien on it. It is no big deal. Once it is paid off, the lender is required to send you and DMV the letter that they lost interest in your vehicle. I have done that many times, and I don't see issue with it. I still have Lien on my 15 years old Cherokee EVEN though it was paid off 7 years ago and I don't care cause I know that bank won't screw with me.

Can't wait to get the lien release letter from my bank, will happen before 2013 ends.
Click to expand...

Why in the world does your bank still have a lien on your Cherokee since you say it has been paid off 7 years ago? Is it because you offered the Cherokee as collateral for something else you made a loan for?
 
They can, but getting money after sale will take a while and the bank is the one who gets the check first, and remaining balance send back to the debtor.

Repo, much worse because, bank will charge the debtor the repo fees, and all of the services fees, they will sell at auction and get money to pay down the debt, and if still owe more, the debtors are STUCK with that debt regardless until they are paid for. Happened to my stupid friend. He never learns lesson.

For example debtor owes bank $15,000, and bank repos that car, sold off at auction for $14,000, plus about 750 dollars for repo fees, that debtor still owes $1,750 to the bank even after the car was sold. Also, if debtor is too dumb and did physical damage to the vehicle, the debor's insurance will pay for the damage minus deductible. So in future that debtor trying to buy car with loan will be truly SOL or end up paying insanely high interest rate like 30%.

Jiro said:
they can't sell a car since bank owns it
Click to expand...
 
Tousi said:
Why in the world does your bank still have a lien on your Cherokee since you say it has been paid off 7 years ago? Is it because you offered the Cherokee as collateral for something else you made a loan for?
Click to expand...

probably cuz DHB didn't get around to paperwork :dunno2:
 
diehardbiker said:
They can, but getting money after sale will take a while and the bank is the one who gets the check first, and remaining balance send back to the debtor.

Repo, much worse because, bank will charge the debtor the repo fees, and all of the services fees, they will sell at auction and get money to pay down the debt, and if still owe more, the debtors are STUCK with that debt regardless until they are paid for. Happened to my stupid friend. He never learns lesson.

For example debtor owes bank $15,000, and bank repos that car, sold off at auction for $14,000, plus about 750 dollars for repo fees, that debtor still owes $1,750 to the bank even after the car was sold. Also, if debtor is too dumb and did physical damage to the vehicle, the debor's insurance will pay for the damage minus deductible. So in future that debtor trying to buy car with loan will be truly SOL or end up paying insanely high interest rate like 30%.
Click to expand...

hence... the bank owns it.
 
Halfa to pay 50 dollars to take lien off from the title. Why bother? If I m not selling, whats the point of paying 50 dollars to DMV, and all they do is re-print title with no lien on it. If I sell it, I just attached letter of satisfactory release of lien from the bank and keep 50 dollars in my wallet.

Tousi said:
Why in the world does your bank still have a lien on your Cherokee since you say it has been paid off 7 years ago? Is it because you offered the Cherokee as collateral for something else you made a loan for?
Click to expand...
 
give me $50 dollars... oh no, I just remember they just increased the fee to $75 dollars, okay give me $75 dollars so I can go to DMV and get replacement title without lien on it.

Its no brainer really.

Jiro said:
probably cuz DHB didn't get around to paperwork :dunno2:
Click to expand...
 
diehardbiker said:
Halfa to pay 50 dollars to take lien off from the title. Why bother? If I m not selling, whats the point of paying 50 dollars to DMV, and all they do is re-print title with no lien on it. If I sell it, I just attached letter of satisfactory release of lien from the bank and keep 50 dollars in my wallet.
Click to expand...

I know governments everywhere are daily dreaming up new taxes and fees they can levy on us but this one takes the cake, :lol: Hasn't happened with the CA DMV.......yet
 
diehardbiker said:
give me $50 dollars... oh no, I just remember they just increased the fee to $75 dollars, okay give me $75 dollars so I can go to DMV and get replacement title without lien on it.

Its no brainer really.
Click to expand...

$25 wasted.....
 
I just found out, it was 20 dollars, plus my time plus my mileage used to drive down to DMV showing letter that bank is satisifed and wait 10 days to get new title without lien, whats deal with it?

Its been like that for almost 8 years ago, and not even one tiny problem. Do you think banks are dumb enough trying to mess with me even after it is paid off? whats your fuss?


Jiro said:
$25 wasted.....
Click to expand...
 
Nothing is going to happen if one don't get lien off from title after the loan was paid off, right? Or will there be crime behind it? Seriously, there is no crime in it. The only time you need to do that is when you halfa to sell the vehicle and I have no plan on selling my Cherokee.

Or show me the law that I am required to remove lien after it is paid off, can you?

Tousi said:
I know governments everywhere are daily dreaming up new taxes and fees they can levy on us but this one takes the cake, :lol: Hasn't happened with the CA DMV.......yet
Click to expand...
 
diehardbiker said:
Nothing is going to happen if one don't get lien off from title after the loan was paid off, right? Or will there be crime behind it? Seriously, there is no crime in it. The only time you need to do that is when you halfa to sell the vehicle and I have no plan on selling my Cherokee.

Or show me the law that I am required to remove lien after it is paid off, can you?
Click to expand...

I just re-read my comment. What are you asking me, exactly?
 
diehardbiker said:
I just found out, it was 20 dollars, plus my time plus my mileage used to drive down to DMV showing letter that bank is satisifed and wait 10 days to get new title without lien, whats deal with it?

Its been like that for almost 8 years ago, and not even one tiny problem. Do you think banks are dumb enough trying to mess with me even after it is paid off? whats your fuss?
Click to expand...

my fuss? I didn't say anything.

calm down. you're getting way too excited.
 
You can't sell the car if you have no title. And the car is not legally your as you still own money on it.
 
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