khiyal

I got my car in Nov. with some down payment and the rest financed through a bank. It is my understanding that the title of the car should say that there is a lien on the car. However, my title is clean, and says "NO Liens Recorded" Is this an oversight, or is this how it is supposed to be?

yangkimchi

Odd, generally, you dont get the title until the loan is completely paid off.

flatfoot

It depends on the state. States all have their own regulations on this. New York State for instance, if you have a loan on the car, in which the car is being used as collatoral, then the car is jointly owned, and you will receive from ny state dmv, a vehcile title, with a lien or co owner on it. when loan is payed off, you get paperwork from whom the loan is from saying their interest has been satisfied, and ususally within 3 months you get a new clean title.
Its a pain, if you are trying to sell your vehicle during those three months when you are waiting for a clean title.

Much regards

DocTL

Where are looking up the information? If you are unsure you can call the bank directly to verify. Most likely there is definitely a lien on the title.

davenlei

It is possibly a mistake in your favor. I had a friend buy a car (92 Maxima) when they were new many years ago. He put $3,000 down and financed the rest. A month or two later he received the title in the mail unexpectedly. He checked to see if it was free of any leins and it was clear. He never received a payment schedule either. He realized the dealer screwed up and just kept quiet for a year to see if they would catch their error. They did not and he enjoyed a brand new Maxima for a grand total of $3,000 for the next four years before he traded it in.

khiyal

There is definitely a lien, as I am getting my monthly bill regularly. However, just that it is not recorded on the title is kind of strange. I am certain that it is an oversight on part of the dealer.

davenlei

Since you are in the finance company records, the finance company will probably catch it in an internal audit eventually and ask to be put on the title as a lienholder.

MichaelBenz

iTrader: (2)

What probably happened was this....if you got the cert of origin or title to car when you picked it up and dropped them a bank check....the dealer was supposed to note the lein in the titlework (often they dont worry about it and leave it up to you) and you took it into the BMV to get plates and reg car and it just all went through like it appeared it should have. OR.....the dealer didnt note the lein on the paperwork and sent the title into the BMV (depending on how your state works) which in turn was inadvertantly returned to you. The bank will more than likely end up writing you a letter asking where the title is within about 60 days. Either way....they could file for a lein after the fact based on your loan contract stating that there would be a lein against it. Bottom line...loop hole. I'm with the one guy though....I'd just sit and wait for the bank to give you grief about it. If they never ask....leaves you with the option to sell it in case of emergency or something and still keep paying on the loan.

khiyal

What a timing co-incidence. Got a call from the dealer about it. They want the title back so the lien could be added.

MichaelBenz

iTrader: (2)

Ya...that bank probably called them and told them we assume you are gonna assume the risk on this loan since you did not properly note us as a leinholder on the vehicle, but cashed our check on the purchase. Ususally....there is a small white peice of paper stapled to all these types of loan checks to car dealers stating to lein the title in favor of: xyz. So....that left the dealer at the loss of chasing you down instead of the other way around. Interesting ploy from the bank there......prob could have just called you and mentioned it...but the fact is...this is gonna take the title back through the BMV to get that added and registered formally, which is gonna cost $30 or something....so the dealer is gonna handle it and pay for it (or take advantage of any title deals or expressways they have through your local BMV to get this done fast/cheap) and at that time...the title will be sent to the leinholder on file like it should have. Bank is just doing you a favor and contacted the dealer since they cashed the check and its gonna cost money to get this put on (minimal amt...but still, not your fault?) My guess is the bank just put fault where it belonged and backtracked in the deal to get it taken care of, obviously, at no expense to you. If they call you, then it puts you at a loss and you are their customer. Personally...this has also happened to me a few times...but I always wrote the leinholder in myself before/as I was registering it at the BMV so this wasnt a problem....I mean...I knew I had a leinholder and it wasnt on there? Kind of hard not to notice. BUT...depending on your state....the dealer may deal with title and license or something? In Indiana...they just hand you the titlework and you take it to the BMV to get plates and title it....the dealer does none of this.

kazwell karz

funny thing is , it really doesnt matter in NY..as a dealer.i can tell you, that DMV will carry over a lein from owner to owner anyway, which is retarded in my eyes...kaz

MichaelBenz

iTrader: (2)

You wouldnt find it retarded if you were the bank who actually "owned" the car by way of the lein! I hear what your getting at...but when a lein occurs....the only way to get it off is to satisfy the contractual obligation attached. If it could be removed if I sold the car without having presented the BMV without the proper payoff proof....it would kind of circumvent the whole idea of the lein to begin with....so if I were a financial institution...I would expect the BMV to carry that lein forward no matter who attempted to title the car until the time they are presented with proper paperwork from the bank. In other words...forces the consumer with lein to either pay the loan off or make arrangements for the new party to take over the obligation formally on paper with a, guess what, - new loan contract making a new proper lein. If original seller attempted to sell a car that was not known as "free and clear" (ie. no lein on title), they would most likely violate the contact they had with the bank as there is ususally tems for reassignment of the loan within the contract....meaning the bank has to preapprove, ect. which would always (in most cases) lead to a payoff of the old contract and new contract being drawn up, making a whole new lein. Not that this is not kind of basic....but that is why a lein SHOULD travel from owner to owner until the proper paperwork is supplied to the BMV....it is to protect the leinholder value by law until which time the loan contract is satisfied. About the same as if you tried to sell your house without satisfying the loan contract.....the lein is always satisfied first and redrawn, in most typical cases, in order to keep the transfer clean and proper and to satisfy any and all leins on said property. Now this does not get into loan reassignment, ect, concepts......but they go about the same way....essentially the original owner cant meet the obligations and finds a viable preapproved candidate to take over the loan contract....which in most cases....ends up in the situation described above....one contract or lein is satisfied at the same time it is reassigned and relet under the new name. It simply is a way to protect the true property owners rights....the bank in most cases. Sopranos coming on...I'm out!