Can a lender repo your vehicle if they are not the lienholder if they are not the lienholder on title A different lender is the actual lienholder Any recourse against me by the second lender?


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2010-05-15 20:56:39
2010-05-15 20:56:39

Confusing, but there are a number of scenarios where this might be possible.

First, if the lender is the lender on the vehicle, the ARE a lien holder. They may not have "perfected" the lien, that is registered it with the state, but that is an easy matter for them to rectify.

Second, if they are not the lender on the vehicle, and there is no other lien holder, provided they have a judgment, the court may order the surrender or sale of other property to satisfy the debt and the judgment.

Third, if you have two vehicles with the same lender, and you are defaulted on one but current on the other, the lender may choose to do what is called a"converson of collateral." If so, then the lender may repossess the vehicle you are current on due to the default on the other. They will take which ever vehicle is the esiest to recover in these situations.

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Related Questions

The lienholder has no liability for any damage done by the buyers vehicle.

Only if you have written permission from the lienholder.

Contact the (former) lienholder to get them to release the title to you.

What are the rights of a lienholder on a car title when it comes to repossion of a vehicle?

Yes, taking out an auto loan means that there is a lienholder on the title of the vehicle. Once the loan is paid off, the lienholder is removed and it is owned free and clear.

As long as the loan is valid, the car is collateral. They are able to repossess the vehicle.

If the loan is in your name or if you have a lien against the vehicle, yes. If it's not paid in full and the title in her name, it's not actually her vehicle, per se. It belongs to the lienholder, and the person who received the loan has custodial charge of the vehicle.

It's not illegal, but it won't stop the lienholder from filing in civil court if they're unable to recover their property.

A lienholder is a person or bank or institution that gives someone a loan, so the answer is yes. A private person, friend, boss, parent, or anyone else can be recorded as the lienholder on a vehicle.

Not without permission of the lender. A vehicle cannot be sold without a clear title of ownership. The lender is named on the title of a vehicle as the "lienholder" until the vehicle is paid for or otherwise released by the lienholder.

The best way to file a lien is to take or send the loan paperwork to the DMV. From there, they will file a lien and send you a new title with the lienholder on it.

Either to the owner or lienholder depending on if there is a loan on the vehicle and if there is a loan, how much is owned. The lienholder gets paid first.

No. The lienholder is the rightful owner of the vehicle, and can reclaim their property as needed.

No, it's 100% legal. That finance company is the lienholder. What that means is that, until you've paid that vehicle off and have acquired the title, the lienholder is the rightful owner of that vehicle, and has every right to reclaim their property when the conditions of the contract are not met by the lessee.

what is the question here?.... Just using a ? doesn't constitute a question

If the vehicle has a lien, the title shouldn't be lost, the lienholder should have it. Once the vehicle is paid in full, they will mail you the title.

If you don't have a "contract", you aren't a leinholder. A lienholder must have a contract and have filed the notice with the county recorders office and the title must state you as the leinholder. If the person is named on a title as a lien holder he or she has the legal option of repossessing the vehicle as it is determined by the laws of the state where the vehicle is registered.

As long as there is a lien on the vehicle the lienholder has the right to repossess the property

Unless the credt card company is the lienholder on your vehicle, no.

Yes, take legal action against him. If it is really fraud that is a criminal offense and you should contact he police.

You can only legally register a vehicle in the state in which you reside. If, for instance, you move to another state, as long as the lienholder knows where the vehicle is going to be located there is no problem. HOWEVER - if you intend to take the vehicle to another state in order to conceal its location from the lienholder then you are committing an unlawful act and attempting to deprive the lienholder of their rightful property. You can be charged with auto theft ESPECIALLY if you cross a state line in order to do it.

Yes. The lienholder is the rightful, legal owner of the vehicle, and can take possession of that vehicle anywhere.

1The answer depends on several circumstances, none of which you mention, so the answer has to be that it could be yes or no. Years ago I used to be an auto insurance adjuster. The policy of the company I worked for was this:1. IF the vehicle was NOT paid for [had a lienholder, like a bank or finance company], we had to make the draft out to our insured, AND to the body shop that was going to do the repair, OR If the insured requested, the names of our insured and his LIENHOLDER.This basically forced the insured to get the vehicle repaired, or at least to contact his lienholder and report the damaged vehicle. It was then between he and his lienholder whether he used the funds to repair the vehicle.2. On the other hand, IF our insured's vehicle was PAID OFF, and the insured wanted the draft made payable to himself only, then that's the way we wrote the draft.3. IF the draft was to a third party claimant, regardless of lienholder or not, we wrote the draft to the claimant only.

Without a discharge-of-lien or similar document, IN WRITING from the lienholder, yes.

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