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Old 04-27-2012, 02:34 PM
 
10,869 posts, read 41,139,178 times
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Quote:
Originally Posted by NJGOAT View Post
If there is a lien on the car, the owner should not have had a physical title in their possession, it would have been held by the lien holder. (snip).
Sorry, but that's not correct in the states where I've bought cars, which is in most of the western USA for the last 50 years.

All of our motor vehicle titles are formatted to show the "legal" owner and then there's a portion of the form which shows any encumbrances (liens) held by others to the vehicle. There are spaces on the document for the lienholders of record (or their agent) to release their interest in the vehicle.

The physical possession of the legal owner's title document is always given to the legal owner of the vehicle in these states.
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Old 04-27-2012, 02:42 PM
 
10,869 posts, read 41,139,178 times
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Quote:
Originally Posted by Lux Hauler View Post
This is what I was wondering as soon as I read that the OP had gotten into an accident.

If there is a lien on the vehicle you are pretty much screwed until it is released. Never hand over any money until all documentation is verified. I recently dealt with some guy that towed a vehicle back up from Fl. He was trying to "skip" the title and showed me a title with a sketchy looking release signature. I wanted the car and probably wouldn't have had any issues but I wasn't going to take a gamble with this scumbag and walked away from the deal.
That's where a phone call to the lienholder is worth it's weight in a lien release payoff document that shows the lien has been paid off.

I've had folk try to do the same thing on a title, just get somebody to sign off the lien release portion of the title document as an "agent" for the noteholder. But when I called the bank (or lender), that person wasn't employed there or was no record of the note being paid off. Additionally, there wasn't a release of the lien filed with the Sec'y of State which is essential to obtaining a clear title.

As this has happened to me with cars in the $30-50K range being sold by dealers, I let them clear up the title trail before going ahead with a deal. One friend, a long-term wholesaler in Colorado, got stuck for over $40K on a car that turned out to be stolen and the Sheriff's dept showed up with a flatbed to recover the car for the owner. The "seller" for the car was never found by my wholesaler, so he never got his money back. Lesson learned about using sight drafts with his bank for buying cars. No verifiable title paperwork in the draft envelope, no release of funds to the seller.
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Old 04-27-2012, 06:19 PM
 
6 posts, read 128,590 times
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Thanks again - Those links are really helpful. I called the DMV, and they told me that the car does not have a lien holder on the title. However, they also stated that I could go to a title hearing. If that doesn't work, I could try and have the title bonded. But that could be a lengthy process - up to 90 days.
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Old 04-27-2012, 08:16 PM
 
10,869 posts, read 41,139,178 times
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Quote:
Originally Posted by pratt_96 View Post
Thanks again - Those links are really helpful. I called the DMV, and they told me that the car does not have a lien holder on the title. However, they also stated that I could go to a title hearing. If that doesn't work, I could try and have the title bonded. But that could be a lengthy process - up to 90 days.
IIRC, Texas requires that you "publish" your application for a bonded title in a newspaper of record, and that you also contact the last known address of the prior owner via registered mail.

What that does is give the seller notice and the opportunity to contest your application if he asserts an ownership interest in the vehicle.

IOW, your application for a bonded title isn't a slam dunk going through the process to obtain the title. It could take more time and money than you think to do this.
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Old 04-29-2012, 11:43 AM
 
6 posts, read 128,590 times
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I figured it wouldn't the end. But I have to try. On my 8th, I will go down to the court house and try to have a hearing. I wont put much money into it or to much time...I just feel so screwed over. I don't understand why he wont just hand it over.

What I did in the mean time is buy a new car. I removed the insurance on the 99 honda effective yesterday. If the court wont make him give the title up, i'll just give the car to some homeless guy on the corner. Let him have a wreck with no insurance on the car and see how it ends up on the title owner....
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Old 04-29-2012, 01:37 PM
 
4,248 posts, read 10,228,903 times
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Quote:
Originally Posted by topher5150 View Post
How do you get a car licensed, and insured without a title?

Odds are that the seller left the plates on the car and the registration was still good. In Texas you don't need a title to get insurance.
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Old 04-29-2012, 01:38 PM
 
4,248 posts, read 10,228,903 times
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Quote:
Originally Posted by pratt_96 View Post
i figured it wouldn't the end. But i have to try. On my 8th, i will go down to the court house and try to have a hearing. I wont put much money into it or to much time...i just feel so screwed over. I don't understand why he wont just hand it over.

What i did in the mean time is buy a new car. I removed the insurance on the 99 honda effective yesterday. If the court wont make him give the title up, i'll just give the car to some homeless guy on the corner. let him have a wreck with no insurance on the car and see how it ends up on the title owner....
I like this idea.
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Old 04-29-2012, 05:44 PM
 
Location: Metro Washington DC
12,553 posts, read 18,926,430 times
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Quote:
Originally Posted by danieloneil01 View Post
... In Texas you don't need a title to get insurance.
Didn't the poster say the insurance company won't pay without the title?
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Old 04-30-2012, 11:46 AM
 
14,777 posts, read 34,498,385 times
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Quote:
Originally Posted by sunsprit View Post
Sorry, but that's not correct in the states where I've bought cars, which is in most of the western USA for the last 50 years.

All of our motor vehicle titles are formatted to show the "legal" owner and then there's a portion of the form which shows any encumbrances (liens) held by others to the vehicle. There are spaces on the document for the lienholders of record (or their agent) to release their interest in the vehicle.

The physical possession of the legal owner's title document is always given to the legal owner of the vehicle in these states.
Interesting. I'm on the east coast, so most of my experience is here and it is admittedly rather limited on the titling side of the business. If you buy a car with financing, the bank/lien holder holds the physical title until the lien is satisfied, then the title is signed over to the owner (for example, my Malibu is financed and I do not have a title, it's held by the bank). I had thought this is how it worked in TX as in the past I have dealt with vehicles there and we had TX titles in the title vault, that were then signed over and sent out after the liens were satisfied.

Are there different kinds of titles? One being an "owners copy" that shows the lien holder and then one being the "official title" that is retained by the lien holder? Only asking because the TXDMV site had a specific section for waiting for the lien holder to clear and mail the title.

Quote:
Originally Posted by pratt_96 View Post
Thanks again - Those links are really helpful. I called the DMV, and they told me that the car does not have a lien holder on the title. However, they also stated that I could go to a title hearing. If that doesn't work, I could try and have the title bonded. But that could be a lengthy process - up to 90 days.
Glad you found them helpful. My last bit of advice would be to seek out the services of a title agency if the hearing doesn't work out for you.
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Old 04-30-2012, 03:08 PM
 
Location: 305
470 posts, read 983,364 times
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I can't believe you handed over ANY money without having the title in your hands. That was a stupid move. Now you are going to have a whole mess of problems.
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