Hey guys I got my TL last august and just yesterday I got my title in the mail. I financed it and all, but I think theres a problem. It says the vehicle has NO LIEN. whats going on? Did they make a mistake and should let them know about it or just wait it out till they figure it out???

 

i dunno what the laws are in ny, but yea, there's probably supposed to be a lien holder listed on the title and your lender probably wants to be the holder of the actual piece of paper title until the car is paid off, at which point they would return it to you. at least, that's how it worked for me here in CA, but my lender is a bank from NJ and the title was forwarded to them by the DMV.

i would call your lender and see what they want you to do. it's not like it wouldn't show up somewhere that the car is financed if you tried to dump it for cash.

 

If you actually were to keep the car through payoff it really doesn't matter in the big scheme of things.... Heck, you would be just that much ahead due to not having to request a new title with the lien removed or ensure you have the proper "lien release" documents from the bank etc..

However, if you were to sell prior to payoff, proper steps would/could be missed given the fact the lien was not evident on the title.

Now, being the honest man that I know I am, and absolutely knowing I wouldn't remotely mess with my credit and or bank,,,, I would just file the title and do whats right if and when I sold or traded the car in the future.

 

uhh if you are the holder of the title, and there is no lien on it, RUN man!! FREE CAR! lol just kidding, even though ownership is 90% of the law

 

You shouldnt have that title yet.... lol

 

I would just keep it (you never know when this advantage could come in handy in a "oh shit...I need money in a hurry situation".....but most likely your bank will be sending you letters to get it from you within a few months...but hey...sometimes things slip though the cracks. I know when I got my car...I had to write the leinholder in myself...but I had agreed to do that with the bank. Usually the check they get from the bank has a "lein title in favor of or to" slip of paper on it...but honestly...sometimes it does not get done as you have seen! It is really either the banks fault or the dealers fault....either way...not your fault. I would sit and wait personally! You will still owe for the loan...and on paper...they would still have the right to cease the property if you failed to pay or defaulted on the loan even if they didnt have the title (cause I am sure it states they are supposed to hold the title in the contract somewhere)...but since you hold the title...technically....you could do some things to get immediate cash if needed - but again...you would still owe for the loan and the bank would most likely demand full payment of the whole loan if they ever discovered you didnt hold the vehicle any more....BUT....if it truely fell though the cracks....it may NEVER be discovered unless you default or the audit dept is doing their job at the bank and catches that the title isnt on file. Again...I would just wait! So long as you pay your loan...they might not ever figure it out.

 

Whether a lien is on the title or not he still has debt at the bank - unless he wants a credit score of "50". The lien on the title ensures if the car is traded, sold, totaled (of course his insurance already knows of the lien/loan) that money will flow to the bank "first", justifiably due to the "collateral" that the car represents. Once coykiam gets rid of the car he no longer has the collateral to secure the loan thus again, the reason the bank gets paid first. Without the car the loan is "unsecured" and would not have been granted without other co-signature and/or collateral of equal value.


Like wasupdog mentioned, some states send the title for the bank to hold, others send to the vehicle owner etc.. I've never had a title not come to me. And when financed all had a liens identified. I wonder if coykiam's title was supposed to go to the bank vs him........

 

lol speaking of credit scores of 50, a lady came in today to get a prequal for a mortgage, and had a 430 credit score... i offered her my credit repair service, but she was like noo, my friend does that, nevermind...

i was like wow, you would think that a person with that bad of credit would know before they try to buy a house...

 

If she has a credit score of 430, the law is looking for her. That's pretty bad. As an officer of a large bank, I can assure you that's one of the worst scores I have ever seen....and I see several credit reports a day. Wow.

As to your title issue, if your bank is in a title holding state (some states aren't), they will eventually find out the title is missing. When you signed your paperwork, you agreed to them placing a lien on the title and holding the title until such lien is paid in full. Doing anything like has been mentioned above would not be a wise thing to do. You have two choices...you can contact your bank and turn the title over to them....but if you do, make damn good and sure it gets to the right department so it's properly placed and not lost. Your other choice is to just hang on to it until the notify you they don't have it. Personally, I would go with the last option. That way you know it's going to go where it's supposed to. If they never notify you, once the loan is paid in full, you have a clear title...and a clear conscience.

If your state isn't a title holding state, you do receive the title back yourself. However, it should have the lien on it. You would need to take the title to the lender and have them clear the lien once the loan is paid.

 

thanx for the replies and suggestions guys...I think i might go and wait till they call..hehe

 

Funny....isnt that about what I said myself? But most likely its gonna get caught at the bank level and they will start asking for it. But if not...he holds a title thats free and clear and technically...if pressed....could take said title to another bank and get a secured loan on it again. Now I am not saying this is wise...but it could be pulled off it bank #1 never missed the title, you kept up all payments throughout the loan period, ect. Now again....I am not saying this is wise...or even legal...but it could be accomplished if you were vigilent at your payments on both loans. Now the fact that most likely somebody that was pulling something like that is probably not going to....thats another story. But options are options....and I tend to always see all of em and try to keep as many open as possible!