Buying vehicle(s) with liens on title ?

Jiro said:
how? a bank owns a car since a bank paid for it.
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The bank does not own all people cars. I talking about buy a used car from Joe Blow not Bank of Joe Blow.
 
I am not sure how clear am I, my cherokee is ALREADY PAID OFF period. I do not owe the bank anymore and I have the letter to prove that. Whats the point of paying to DMV to remove lien holder if I am not planning on selling my Cherokee?

When I am ready to sell my Cherokee, all I have to do is pay a visit to DMV along with proof of letter of lien being released by bank and DMV will take care of it, and at same time sell to the buyer. Its not hard up here in NYS, I am not sure about other state. My case, Im doing what we called, "kill two birds with one stone". I ain't going to DMV twice for same thing.

Since I am not selling my Cherokee even with lien on the title, whats point of paying visit to DMV just to delete the lien on my title? How many times do I have to mention that I have no plan to sell my Cherokee? You see, I just leave everything as is, and bank isn't going chase me, and DMV still thinks I owes money to my bank, do you think DMV is going chase me after it was paid in full? Do you really think DMV cares about it?

Here how it works, if you fail make payments to the bank, and what bank do? They contact repos, and repos report to the local police of intent to repos. Police department becomes aware of it and when the car owner screaming at cop, there is nothing cop can do about it. But if the payment has been paid in full, do you think bank is going to repo my Cherokee after it was paid in full? I don't think so, and nothing happened in the last 7 years and I see no reason to waste an hour in DMV office. You know, DMV office can be suck with long lines.

If you wonder why I have lien on my title, it is simply because I once owe bank for Cherokee. I got Title as soon as I bought my Cherokee and it has been on my hand since first day I own my Cherokee, that is why lien holder information is there in the first place.

Tousi said:
In DHB's case, I don't see why there's a lien on a car he says he paid off 7 years ago UNLESS the car's now being used as collateral for something else with that bank.

But it appears that he's just not doing anything because it costs 50 or 75 bucks to get the pink slip sent to him.

Here in CA, they send us our pink slips after the last payment is made.....no charge. That's why my quip about governments/businesses everywhere thinking of different and legal ways they can charge us for their products......
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If the seller didn't pay off, then your right. But if seller already paid off, what crime?

Don't you use your head, here in NYS when I need to sell to private buyer, I HAVE to HAVE go to DMV along with two papers, first one was a title, second paper that came from the bank that I once owed them that they are cleared and clean. Simple as is.

Looks like you guys don't get what I am saying. And nothing is illegal here. Go ahead call cop, and give them a day of laughing at you.

Jiro said:
and only a stupid seller would sell a car without a clean title because that would be illegal. it's a theft and fraud.
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This can be found under this link

NYS DMV - Vehicle Registration - Title Certificates and Vehicle Ownership

See red font
See green font, that is exact what I am talking about and I HAVE IT from the bank in my own file!

How to Remove a Lienholder from a Title Certificate
How do I get a title certificate that does not list a lien?

When you get a loan for a vehicle, the loan company normally gets a lien against the title certificate. The loan company becomes a lienholder, and the name and the address of the lienholder are listed on the certificate and the DMV records.

To remove a lien, you must pay the loan and get proof from the lienholder that the lien is satisfied. You must send the original title certificate and the proof to the DMV Title Services Bureau, or apply at a DMV office. There are two acceptable proofs that you can provide:

The lienholder can send you form MV-901 (Notice of Recorded Lien). An authorized officer of the lienholder must sign the form and indicate that the lien is satisfied.

The lienholder can prepare a letter. The lienholder must print the letter on the official letterhead of the loan company, and an authorized officer must sign the letter. The letter must identify the vehicle and indicate that the lien is satisfied. If the lienholder is a person and not a loan company, the letter must be notarized.

There is a fee of $20 to remove a lien from a NYS title certificate.

Send your current title certificate, the original proof that the lien was satisfied, and a check or money order for $20 payable to "Commissioner of Motor Vehicles" to the address below. The DMV does not accept a photocopy of the proof that the lien was satisfied. In approximately 60 to 90 days, the DMV sends you in the mail a title certificate that does not list the lien. The title certificate must be mailed to you; a DMV office cannot give you the title certificate.
Lien Release
NYSDMV Title Services
Department of Motor Vehicles
6 Empire State Plaza
Albany, NY 12228-0331
Can I transfer a title certificate that has a lien listed?

You can transfer the title certificate and give the new owner the original proof that any lien listed on the title certificate was satisfied. Keep a copy of the proof for your records. When the new owner applies for a registration and title certificate, DMV receives the title certificate and the proof that the lien is satisfied. When the DMV processes the title certificate of the new owner, the lien is removed. If the new owner does not provide the original proof that the lien is satisfied, the lienholder is listed on the title certificate of the new owner.
 
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.
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No fee here.

http://www.scdmvonline.com/DMVNew/forms/450.pdf

The form request usually isn't necessary. When the last payment is made, the lender automatically sends the release.
 
diehardbiker said:
If the seller didn't pay off, then your right. But if seller already paid off, what crime?

Don't you use your head, here in NYS when I need to sell to private buyer, I HAVE to HAVE go to DMV along with two papers, first one was a title, second paper that came from the bank that I once owed them that they are cleared and clean. Simple as is.

Looks like you guys don't get what I am saying. And nothing is illegal here. Go ahead call cop, and give them a day of laughing at you.
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again... in order to sell a car - you need a clean title even if you've already paid it off.

a clean title. simple as that.
 
Didn't you read the red fonts that I copy N paste from NYS DMV website? I don't think you understand. The official letter with headline must be from the bank directly declared that the vehicle has been paid off. The names, contact information must match on the lien holder, once seller has BOTH of these paper, and visit DMV, of course DMV will contact Bank to verify, once verified. Its all good to go and I walk off.

Have you dealt with NYS DMV before?

I am aware that this method won't work in Commonwealth of PA oh, Kentucky, Massachusetts, and some states too. NYS have full network and full access to resources, even to banks, insurance companies. That is why it is easier to sell with title that has lien holder along with proof of paid off statement on it here in NYS. Very hard to fool NYS DMV, FYI!

Jiro said:
again... in order to sell a car - you need a clean title even if you've already paid it off.

a clean title. simple as that.
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diehardbiker said:
I am not sure how clear am I, my cherokee is ALREADY PAID OFF period. I do not owe the bank anymore and I have the letter to prove that. Whats the point of paying to DMV to remove lien holder if I am not planning on selling my Cherokee?

When I am ready to sell my Cherokee, all I have to do is pay a visit to DMV along with proof of letter of lien being released by bank and DMV will take care of it, and at same time sell to the buyer. Its not hard up here in NYS, I am not sure about other state. My case, Im doing what we called, "kill two birds with one stone". I ain't going to DMV twice for same thing.

Since I am not selling my Cherokee even with lien on the title, whats point of paying visit to DMV just to delete the lien on my title? How many times do I have to mention that I have no plan to sell my Cherokee? You see, I just leave everything as is, and bank isn't going chase me, and DMV still thinks I owes money to my bank, do you think DMV is going chase me after it was paid in full? Do you really think DMV cares about it?

Here how it works, if you fail make payments to the bank, and what bank do? They contact repos, and repos report to the local police of intent to repos. Police department becomes aware of it and when the car owner screaming at cop, there is nothing cop can do about it. But if the payment has been paid in full, do you think bank is going to repo my Cherokee after it was paid in full? I don't think so, and nothing happened in the last 7 years and I see no reason to waste an hour in DMV office. You know, DMV office can be suck with long lines.

If you wonder why I have lien on my title, it is simply because I once owe bank for Cherokee. I got Title as soon as I bought my Cherokee and it has been on my hand since first day I own my Cherokee, that is why lien holder information is there in the first place.
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Now you're not telling me anything I don't know......I guess you just get off "listening" to yourself.
 
No, its not you, it is Jiro and others. Your right on this one, not all state has same regulations.

Tousi said:
Now you're not telling me anything I don't know......I guess you just get off "listening" to yourself.
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Where? Im lost, LOL

Im not sure why these people think it is illegal to have lien on paper after it is already paid off. If that is so true, DMV would have stopped renew my registration years ago, I still renew and last time was last month.

Tousi said:
Well, you directly quoted me.......anyway, water over the dam now....
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Likely he still owes bank and that is illegal of course. But if he didn't owe a penny to the bank, then he won't be arrested.

You see, my point is, once bank release the lien and report to DMV, still here can sell even if Lien exists on the title.

Here is scenario that works here in NYS

Seller A has no lien on title
Seller B and C has lien on the title
Seller B has the official letter and proof that the lien interest has been released (Proof of debt has been paid in full)
Seller C still owes the bank


Seller A will have no problem selling vehicle, all he needs to do is sign in back of title (Some states requires that it is to be notarized)
Seller B will have no problem selling as long as he signs in back of title PLUS attach proof(Seller keeps the copy of it) that the debt has been paid in full. Buyer should contact the bank directly to verify that the letter is legitimate. Buyer would be wise to google up the bank information and look for current contact information and contact them from that point. Both of seller and buyers have to be at DMV office to do complete transaction.
Seller C, if sell to buyer without pay off the debt, then that is CRIME.

My case, I am seller B not Seller C.

Foxrac said:
Yes, same with Alabama.
Decatur man arrested for selling car with lien on it | al.com
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diehardbiker said:
Didn't you read the red fonts that I copy N paste from NYS DMV website? I don't think you understand. The official letter with headline must be from the bank directly declared that the vehicle has been paid off. The names, contact information must match on the lien holder, once seller has BOTH of these paper, and visit DMV, of course DMV will contact Bank to verify, once verified. Its all good to go and I walk off.

Have you dealt with NYS DMV before?

I am aware that this method won't work in Commonwealth of PA oh, Kentucky, Massachusetts, and some states too. NYS have full network and full access to resources, even to banks, insurance companies. That is why it is easier to sell with title that has lien holder along with proof of paid off statement on it here in NYS. Very hard to fool NYS DMV, FYI!
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um..... you just basically proved my point....

bold red print above - correct.... it's called a "clean title"....
 
diehardbiker said:
Where? Im lost, LOL

Im not sure why these people think it is illegal to have lien on paper after it is already paid off. If that is so true, DMV would have stopped renew my registration years ago, I still renew and last time was last month.
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we've.... never..... said..... such...... a........ thing.....
 
Then why ask me why I leave lien on my title even long after it was paid off. I don't see reason to do anything because I am not selling old reliable Cherokee.

Jiro said:
we've.... never..... said..... such...... a........ thing.....
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