Out-of-state car with a loan not paid off - have to refi? Seriously? (Bethlehem: homeowners insurance)

[SDWNC]

This stuff should be filed under new resident questions, I think.

Here's what we found:

Motor Vehicle Information for New Residents

Here's what it says:

Pennsylvania title procedures require that the out-of-state title be surrendered to the Bureau of Motor Vehicles when applying for a Pennsylvania title. The current lienholder of an out-of-state title may require that the vehicle owner refinance the balance of the outstanding lien through another lending institution and pay the out-of-state lienholder in full. A Pennsylvania certificate of title will only be issued when the out-of-state title is submitted with the completed Form MV-1, “Application for Certificate of Title.” Likewise, a temporary Pennsylvania registration plate may only be issued when the out-of-state title is submitted with the application for Pennsylvania certificate of title.

* * * *
I don't have a title because I'm still paying off the loan. I stopped at the nationwide bank and the gentleman confirmed he can only show his bank as the lien holder. It looks like my only option (not the same for other people) is to pay off the rest of the loan to get the title released. All I'm getting from the bank is a statement stating they have a lien on the car.

If I'm reading the DMV blurb correctly, it seems insane and makes refi'ing a great in-state business for those who can't pay off their loan.

Translator needed please.

As always, thanks all.

[SDWNC]

I'm updating this knowing this sort of issue will happen to others.

Bottomline: I still don't quite understand this. But each person to whom I've spoken agreed
the PA laws are confusing. The best thing I can do is list a business card who is handling this
(and I know people like this are all over but their business name isn't so obvious .

BEV'S AUTO TAGS LLC
She's in Bethlehem. It was a complete fluke that we ended up at her place as I struggled
to resolve this.

She's getting the title from my auto loan place. I was going to contact my prior state's DMV and
attempt to get the title from them and that was not going to work because I never had it... Bev
said the title is not allowed to be sent to the owner. It has to go to a shop like here. I don't get
it. I have my auto loan number and the name/addr./phone/fax . She also was concerned
about the timing and thought this was a little early to even get it (due to the end-of-May house
closing date). It's all about timing. After we get our driver's license (for us, it's just an eye
exam), we have like 20 days to get the car titled and registered. We're once again in good hands.

Bev is handling the details. She was even going to point us to an insurance company but
we have that set already since we needed to produce homeowners insurance for the house
we're buying.

It is nutso here.