Repossession

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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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.


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


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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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