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If your car loan has been charged off can you request the title?

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Wiki User
2015-07-16 19:30:48
2015-07-16 19:30:48

no they dont charge off car loans it would be repossed by the bank first.

This is untrue. I am in this situation- the loan was charged off and the car *has not been repossessed*. Does anyone have an answer?

Well, yes, you can REQUEST it. But you won't GET it. "Charged off" in just an accounting entry that keeps the bank from overstating its assets and anticipated income by removing loans that they do not expect to collect from their balance sheets. They still hold a lien on the vehicle and you cannot get a clear title.

What some shady folks do in this situation is to get trusted shop or friend to file a mechanic's lien on the vehicle that exceeds the value of the car. So say someone has a car worth $3000 at the wholesale price, a sketchy type will get an auto shop owned by buddy or their shade-tree mechanic brother-in-law to place a mechanic's lien on the car for $3200 (for either overpriced or non-existent work) and execute the lien.

Bank will not mess with claiming their stake, as the car is only worth 3K to them in addition to expenses and hassle of recovering. This is because the bank would be forced to pay the mechanic's lien of $3200 and be left with a car worth only $3000. Shop or buddy then signs the title over to the original buyer for usually a few bucks and everybody is happy except the bank.

Related Questions

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Once you have received notice that the creditor has been paid in full you can contact the owner of the loan and request the title. They may want to see that they have been paid in full in writing via the trustee. It is really not that hard to get the title. Good Luck!

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In most states, yes, the lender is actually the 'owner' until the loan is paid off and can require that the cosigner be on the title.

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After you pay off a loan, the title is usually sent to you, and leins are dropped. This will vary from instance to instance though. Ask your loaner.

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Usually a title loan is based on the current market price of the vehicle. Usually 25% of the price is what you can get a title loan for. Before you sign anything make sure you take the time and read all the small print and ask lots of questions. Some Title loan places will have you pay back 2 or 3 times what the original loan was for. Be careful.

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'Title Loan' is a loan you will be getting of having a car loan on your on name.

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