If the finance company went bankrupt but they are still the lien holder on the title?
I don't have a definitive answer, just a theory. When a Finance Company goes out of business, their holdings, or assets, are possibly assigned to THEIR creditors. Usually larger Finance Companies, or some sort of debt clearing house. Your finance company went bankrupt, which implies that they owed money to people, and could not pay. From another of your questions, it seems that those companies, both the car lot, and the finance company were money laundering operations. Right? Some facet of that finance company had to be legitimate, in order to be licensed by the State of Texas. They borrow money at a low rate(in theory), then lend it at a higher rate, for profit. If you stop paying for the car, they want it back. If THEY stop paying those who lent them the money, those companies want to seize the smaller companies assets, to limit their losses. YOUR car, was one of those assets, apparently. The ONLY reason they'd want your car, would be to sell it, to make as much as they can. You CAN just pay off the balance due, then the title to that car ought to be yours. The purchase, or lease thing, is possibly a very stupid attempt to trick you into just giving them the car back. You've already paid two-thirds of the payments. There isn't much left on it. IF you give them the car, it's value is far above what you owe on it. Which means that IF they sell it, they get more money that way, rather than simply clearing your title. Another possibility is, that this other finance company, is actually the SAME bankrupt company, but operating under a new name. A common practice of shady operators. I hope you get to the bottom of this.
If my finance company accidentally signed off as lien holder on my title does it belong to me ?
If they can prove that you did not pay off the loan and you can't prove that you did, they can very easily slap another lien on it and most likely will.
I totaled my truck and my insurance wants to pay the lien holder, which will leave me with no car or money. Is there anything I can do?
An insurance company directly paying off a bank is common and legitimate practice. In fact it is an obligation of your loan agreement and that of the insurance company to a lien holder.Once the lien is paid off, any excess value the car may have over the loan payoff amount will be disbursed to you. If the value of the loan is greater than that of the vehicle, the borrower will have to work out terms with the bank.Is there anything you can do? Sure there is:Contact the insurance adjuster and see if the value offered for your car was the best that could be provided.Compare what the insurance company offered for your vehicle to that demonstrated on other sites such as NADA , New Cars, Used Cars, Car Reviews and Pricing | Edmunds .Ask to see a written copy of the insurance company’s valuation report and compare it to the above. You may find that the company uses a CCC Report which will show comparable vehicles for sale in and around your area.If there is a discrepancy, ask the insurance appraiser/adjuster to explain why. If they are not providing information or values to your satisfaction ask to speak to their supervisor. Be prepared and present facts and avoid feelings.Contact the bank to see how the loan payoff compares to the insurance settlement.If the loan payoff is greater than the vehicle value, ask what options you have regarding the purchase of another vehicle. Some banks will allow a loan balance be rolled over to the purchase of another vehicle.If the loan payoff is less than the vehicle value, ask when and how you will receive the difference.Essentially what you can do is take action and engage the parties involved (insurance company and bank). Then, start the process of shopping for a new vehicle.
I have a car that says lien recorded on the title but the seller said it was taken car of...?
I traded for a 1986 5th avenue at my dealership. The customer had lost the title. We contacted the DMV and they had a lien on the car from Chrysler financial. We contacted the finance company they had no record of the lien so they issued a release back to the state of Florida. Go talk to the DMV it could be a cash for title lien but if you have the Title you are the owner. Some states are different but the DMV should be able to help you out.
Can a car loan be in a different name from the title?
Yes. And No.Theoretically, yes the title can differ from the loan. Most common real life example is a husband and wife in the title but only husband on the loan. Parent and child too.However, most banks will want the title to match the loan, so they may require a change.Often, they require a change when get the loan directly from the bank because it's being looked at closer. Dealership loans get more diverse results as the dealer is the one doing the title paperwork.The only REQUIREMENT is that the person on the title be in the loan. You can't bring me mom's car but get a loan under your name. Go change the title with her first, then come in.
What is a lien on a car title?
If a car is financed through any lender, they file a lien, meaning the car can't be sold until the lien is satisfied.You may still trade the car to a dealer, or sell it to a private party, but the lien must be satisfied before the bank or lender will release the negotiable title.If the seller has an original negotiable title, with the lien released on the front of the title, it's safe to purchase the vehicle.The owner can only get a negotiable title - as opposed to a non-negotiable copy - if the vehicle is paid in full.Dealers know how to deal with this. If you are selling or buying to or from a private party, obtain the payoff from the lender, and arrange to have the buyer pay your lender. Any overage will be refunded to the seller.
I bought a vehicle and the car lot went out of business. Finance company doesn’t have records of the vehicle?
Ok. A couple months ago, I bought a Jeep. I just got a phone call from the finance company saying they don’t have a copy of the title or the lien release. So they basically have no record of the vehicle I’m assuming??? My payment was rejected because of this. Soooo I’m unable to make a payment, they’re unable to collect a payment. Unless I give them copies of my paperwork. So technically if I were to say, not pay my payment, there’s nothing they can do, right?
Buying a car from a tow company... Legal or not?
This is a common occurance - completely legal - happens every day. When the car is towed, the tow company contacts the DMV for ownership information. The DMV will provide them with the contact information for the registered owner (RO) as well as the Legal Owner (LO) - the bank. The tow company is required to send out certified letters to all concerned parties detailing the charges against the car and process for claiming the vehicle. If neither party responds within the mandatory time frame, the tow yard is allowed to 'lien sale' the car. This means they have sold the car on their lien inorder to satisfy the tow and impound debt. The rules on how a lien sale is carried out vary from county to county, so I don't know the specifics in your area. When someone buys a car this way, they are given a complete lien-sale or acquisition packet. That packet will contain the tow bill, storage bill, the certified letters sent to the LO/RO, the ad they placed in the newspaper announcing the sale, and the receipt from the sale. You take all of those papers to the DMV and they will issue a clear title. The issue with the loan is between the RO and the bank. They will still go after him for their money. Right now, banks are so backlogged on repos and lien sales that many of these are not addressed in a timely manner, so the bank loses their legal claim to the car. Or, when they receive the notice, they determine that they don't want to shell out even MORE money on a tow and impoun bill, just ot have to chase the RO for reimbursement, since this will still end up as a repo. Also, in some states, the tow company will file for your title if you ask them to. But again, this varies by state. Good luck
If the financer of a vehicle requires you to have full coverage insurance but you cannot afford it, what is likely to happen?
The lender’s remedies for not carrying proper insurance will be spelled out in the loan agreement signed when the vehicle was purchased.Check your contract. You will find a clause that reads something like this:The remedies for not carrying proper insurance coverage available to the bank include:1. Forced Placement: The Bank will obtain Comprehensive and Collision insurance…At Your Expense: The bank will pass the cost on to you. If you refuse to pay it will be…Added to Your Loan: With interest.At Higher Cost: At a cost that is likely much more expensive than coverage you could obtain yourself.Protects Only the Bank: You will not be a party to the coverage. The insurance will only protect the interest of the bank.No Liability or Medical Coverage: The bank is only concerned about securing their collateral. They are not a party to liability or medical loss. If they procure coverage, there will be no consideration for liability or medical losses.In the event the insurance is not paid, or the additional loan amount as a result of forced placed insurance is not satisfied, the next step would include:2. Repossession:Seizure of the Collateral: When you signed the loan agreement, you offered the car as collateral (say, guarantee for payment of the loan). Not adhering to the agreement (the contract) will result in the capture of the asset for which it is assigned as collateral.The details of this question describe the purchase of a motorcycle. If the amount borrowed is not too high, you may be able to offer some other form of collateral to secure the loan - or - depending on your credit history, negotiate a loan without collateral.It is always in the auto loan consumer’s best interest to:Procure their own insurance and keep it in forceProactively negotiate with the lender.Letting the bank take action without attempting to work it out yourself will always lead to a less desirable result.