Lien on title?

Discussion in 'Community Discussion' started by dukebound85, Jun 23, 2009.

  1. macrumors P6

    dukebound85

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    #1
    So I am about to buy a bike and there was a lien on the title. However, there is a signed document saying the lien is no longer held by the original lieb placer

    Is it safe to buy this bike?
     
  2. macrumors 68040

    DiamondMac

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  3. macrumors 68020

    srl7741

    Joined:
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    #3
    No, the Lien needs to be removed from the Title in order for it to be valid
     
  4. thread starter macrumors P6

    dukebound85

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    #4
    Really? If I go into the DMV to get the title transferred to me with that document, will I get a clean title?

    Or am I potentially walking into a financial landmine

    bike=motorcycle
     
  5. macrumors 68040

    DiamondMac

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    #5
    :D

    Now that makes sense. I was about to say....really? A bike? Ok, now I get it.

    The above user answered what I was just about to say, btw.
     
  6. thread starter macrumors P6

    dukebound85

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    #6
    well i ran the VIN throught the NY DMV and there are no liens showing up

    should be fairly safe right?
     
  7. macrumors 6502a

    patrickdunn

    Joined:
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    Location:
    St. Louis, MO
    #7
    My wife has a lein on her jeep with USAA because thats who has the loan. That is probably the same situation.
     
  8. macrumors 68020

    Gelfin

    Joined:
    Sep 18, 2001
    Location:
    Denver, CO
    #8
    This page seems to contain useful information relevant to New York, which appears to handle titles differently than most other states.

    In most states, the lienholder holds the vehicle's title until you've paid it off, and then they send you the title. In NY it looks like the purchaser gets the title immediately, and the lienholder is marked on it. When the loan is paid off, the owner gets a certificate of release of the lien, which he should be able to provide along with the title to anybody he's selling the vehicle to.

    I only skimmed the faq in that page, so it wasn't clear to me how one sells a vehicle one hasn't finished paying for yet. It's been many years since I did that in any state, so I don't know. I do know if you do it wrong, then the seller can actually walk away with your money and leave you owing for his loan. Such a sale can definitely be done, but don't automatically just trust that the seller knows how to do it.
     
  9. JNB
    macrumors 604

    JNB

    Joined:
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    #9
    Generally, you need to take the title (and the notice of release of lien if available) to the DMV, and they cut a new title showing the new owner and no lien. Just make sure any documentation is available, including sales receipt/transfer of title to you.
     
  10. thread starter macrumors P6

    dukebound85

    Joined:
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    #10
    yes, he did say he had the release of lien certificate. i searched the dmv with the vin and no liens popped up so i should be good right?

    i plan of going to the dmv with the seller and once its cleanly transferred, i pay him
     
  11. macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #11
    The seller will still need to go down to the DMV and wait in line for the clean title.

    If you buy this, you might find that it will take 6 months of trips to the DMV and they may even force you to pay for a bonded title (aka, they don't believe you).

    A simple notorized release from the original lienholder usually works for the current owner, but one mistake on the paperwork, and it'll cost dollars to get a clean title -- and it really isn't clean, since it'll be a bonded title which can cost you now and later if the lienholder shows up.
     
  12. thread starter macrumors P6

    dukebound85

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    #12
    this makes it sound as if as long as i have the release and title, it should be good. I just want to make positvely sure before I pay him though
    from the link provided by Gelfin
    http://www.nydmv.state.ny.us/broch/c19.htm
     
  13. macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #13
    If he hasn't done it, it is one of two things...

    1. he tried and couldn't

    2. they are lazier than crap.

    I owned my truck, and even with the lien release from the bank it took me 6 months of waiting for releases and 15 trips to the DMV to get a clean title ... and they wanted me to get a bonded title instead.

    Really, it isn't worth the risk, when the current owner can just go down and clean the title and then sell you the vehicle in the clear.

    I've had tortuous problems on two vehicles, one with notarized paperwork in my name that wouldn't clear, and another that basically never cleared.

    Don't take the risk. It won't be fun if you have to fire off certified mail to the old lienholder and post notices, and/or end up with a bonded title.

    Remember, it is the DMV, they like making people squirm.
     
  14. thread starter macrumors P6

    dukebound85

    Joined:
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    Location:
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    #14
    even if i checked the vin with the dmv and it shows there is no lien at the moment?

    i used this site
    http://www.nysdmv.com/titlestat/default.html

    as you can tell, i really want this and i hate hearing bad news lol

    for instance, here is my car and then bike in question
     

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  15. JNB
    macrumors 604

    JNB

    Joined:
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    #15
    Geez, when I paid my car off, I went to the DMV and got a clear, new title in like 5 minutes, for the princely sum of $4. I suppose there are a few decent things about AZ…
     

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