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So far I've went to the CA dmv with the owner to transfer the title in my name but was told from the dmv that the vehicle title needed to be released from ford motor credit and to give them a call. We called them and find that they have no record of the vehicle so they cant do anything. I gave up on the car for about 5 years until I talked to my auto mechanic about the situation and they suggested that they do a lien sale and sell it back to me to get the title. It's been a year since then with no progress and now I want to give this vehicle away to a friend but still need the title for registration. I now cant get a hold of the original owner and tried to get a sign release of interest document from the lien holder but they wont talk to me since I'm not the original owner, even if they have no record on file. Can anyone help since its a decent car? It still runs and has a clean record according to an autocheck I ran yesterday. I was thinking about mailing ford motor credit the signed transfer of ownership as proof of ownership along with a letter asking for a release of interest document so I can take it to the dmv and get the title. What do you guys think?
I don't know if the DMV in CA can do this process ... but it may be possible to create a new ownership title trail by other means, such as:
1) a mechanic's storage lien. IOW, have your friend with a shop file a claim for repairs/storage fees against what is effectively an abandoned car. There may be a set maximum fee per day of storage per state regs; the ones I've done this in has a $30/day max fee but with 5 years of storage available to claim, that adds up to a sizable sum to claim. In many states, this will lead to a process of notification of the last known owner of record at their last address and publication in a paper with legal notices. It will take awhile, but this should lead to a title issued to the shop for the liquidated damages of storing the car. Your friend can then sell the car to you for a nominal sum and then you can apply for the title in your name.
Alternatively, you may be able to file for a title by publication for a car you've had in your possession for what is a long time. You'll have to convince a title clerk that you legitimately came into possession of the car; ie, you tried to buy the car from the previous owner but they couldn't give you a clear title transfer in spite of your having paid for the car. If the application for the process is accepted by the DMV, then you'll go through the notice/publication process to the prior owner, any lien holder of record, and to the general public. After a certain number of days from multiple publication without a response, the title can then be issued into your name. The DMV may require that you post bond for the value of the car, just in case somebody does come forward claiming an ownership in the vehicle. In some states, this is known as a "bonded title" process, or a "title by publication" and it is critical that you convince the authorities that you really have a right to the car before they'll approve the process. Of course, if anybody comes forward with a claim against the car (such as the former owner or a lien holder), they will have to be satisfied before a title can be issued in your name. Expect that this process can take 4-6 months to complete.
If you can't do these title processes in CA, then do a google search in other states for a title service. They'll charge a fee for their work, but you should be able to obtain a clear title in your own name in due course. If the car is serviceable and worth some money, this may be a viable option for you. OTOH, if the car isn't worth a lot of money at this time, it may not be worth all the time/expense it will take to obtain a clear title and you may be better off selling the car to a wrecking company for scrap.