"CSX-55" (CSX-55)
09/09/2015 at 15:16 • Filed to: None
1
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"CSX-55" (CSX-55)
09/09/2015 at 15:16 • Filed to: None | 1
| 18 |
Some of you Oppos may remember I mentioned flying 2000 miles from Arizona to Michigan to maybe possibly purchase a vehicle. The possible dealbreaker is that the car has a lien on it.
Now, I’ve bought a car with a lien on it before...but that was a local transaction for a relatively small sum. This is for a much bigger sum on the other side of the country.
Any of you that may have ever been in a similar situation, how did your purchase turn out? Any tips or tricks I should know before seriously considering something like this?
I spoke with the financial institution that holds car’s lien in Michigan, and although they gave me good information, the information wasn’t very helpful. Essentially, after paying off the lien at a branch, I’d be able to drive home with the car and title in hand (although the title will still show a lien in the Michigan owner’s name), and it would take “10-20 days) to mail a lien release statement...to the Michigan owner. Not to me. They said there’
s “no way” they can mail the lien release to me. So at that point, I have to hope that the seller will then forward that lien release to me. And then hope that the lien release has all the necessary info that the AZ DMV has for them to issue an AZ title to me (I have all that info direct from the DMV).
That, frankly, makes me very nervous. But maybe this is just how these transactions go?
Sampsonite24-Earth's Least Likeliest Hero
> CSX-55
09/09/2015 at 15:18 |
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is it a wagon? if yes then its worth the trouble
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CSX-55
> Sampsonite24-Earth's Least Likeliest Hero
09/09/2015 at 15:19 |
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I know I’m risking being burned at the stake for saying these here...but no. I’m just not a wagon person. I’m going for the sedan.
William Byrd
> CSX-55
09/09/2015 at 15:20 |
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Document, document, document. Save any receipt, email, any piece of paper that can prove that you provided the money that paid off the lein. Basically, you have the car, so unless he/she attempts to state that you stole it or something, most courts would likely side with you.
This is my dream by the way. Right down to the car you are going to buy (well in wagon form). Try and relax and enjoy the drive back, it’s a great time of year to go for a drive like this. I did MD to Vegas and back roughly this time 2 years ago. Loved it.
WiscoProud
> CSX-55
09/09/2015 at 15:22 |
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Normally they can give you proof the debt was repaid/lien released right away for titling purposes. The actual filing may take longer to go through, but if everyone had to wait 10-20 days basically no dealer would accept trade-ins.
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CSX-55
> William Byrd
09/09/2015 at 15:23 |
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Absolutely. I know what info I need to give the AZ DMV for them to give me a title...the problems I expect all originate at the financial institution and their unwillingness to work with me because I’m “not their customer”. I guess I can understand that, but I’m also paying off one of their loans on behalf of one of their customers...I feel like they should at least try.
Even if they send the lien release to the previous owner and he forwards it to me, all it will take is a missing piece of info (missing VIN, notarized lienholder signature, etc) for me to have a very expensive, 556 HP paperweight on the other side of the country with little recourse short of going to court.
SteveLehto
> CSX-55
09/09/2015 at 15:25 |
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I’ve written about this and talked about it quite a bit. People do this all the time. There is an element of trust on the part of the seller getting the lien termination statement to you after the fact but that’s just the way it is. Michigan is a state where the owner holds the title (not the lender) so you can get the title in hand before you leave.
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CSX-55
> WiscoProud
09/09/2015 at 15:27 |
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My understanding is that I’ll get a receipt (what info that receipt has, I do not know at this point) stating the lien was paid off...whether it shows me as the payee, I again do not know (but I’ll find out). And I’ll at least get the title, albeit with a lien still showing...the real potential dealbreaker is that they’ll take up to several weeks to send the actual release to the person who doesn’t even own the car anymore.
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CSX-55
> SteveLehto
09/09/2015 at 15:28 |
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Mr. Lehto, you are JUST the man I was hoping to see this thread, since you’re in MI and all.
Do you have any advice on what I need to request/specify/do at the time of lien payoff while I’m in MI to hopefully prevent any issues down the road, aside from making sure I leave with the signed tile in hand?
My concern is the lien release having the proper info and whether the lienholder will specify that info for me...the AZ DMV needs:
1) Vehicle info (Year, make, model, VIN)
2) Previous owner’s name
3) Lienholder’s notarized signature ( apparently, MI DMV doesn’t require notarized signatures for title transfers and this is where the issue may be as the financial institution doesn’t normally put notarized signatures on their releases)
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SteveLehto
> CSX-55
09/09/2015 at 15:35 |
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I have never dealt with this specifically before but I suspect you can ask the seller/borrower to request a conforming Lien Termination Statement from the lender (they must do this all the time.) It is more a question of how big they are and how many loans they deal with.
But yes, Michigan does not require notarized signatures for anything now at the Secretary of State’s Office. Kind of like the Wild West. Just show up with a scribbled-on title and they’ll accept it as good.
Bring a Self-Addressed Stamped Envelope with you to give to the seller. That way they have no excuse for not getting it into the mail for you ASAP.
Leadbull
> CSX-55
09/09/2015 at 15:35 |
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“She’s got a mortgage on my body and a lien on my soul”
Takuro Spirit
> CSX-55
09/09/2015 at 15:37 |
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When I bought my truck the owner told me we’d have to do the transaction at his credit union, because he had a lien on it. Assured the lien was the asking price, I agreed and we met at a Dunkin Donuts and I followed him there.
With backup.
We went into the credit union, I handed the lady behind the desk an envelope of money, she counted it, and handed us the title, and the lien release.
It was my first time but..... no wait. The car my cousin gave me for free ended up saying there was a lien on it, and I couldn’t get a title until she mailed me the lien release paperwork. Forgot about that.
Make sure you get a lien release. The DMV likes those.
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CSX-55
> Takuro Spirit
09/09/2015 at 15:42 |
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I already called the bank that holds the lien...they said it takes them 10-20 days to get the lien release. It doesn’t matter if I show up in a branch with a personal check, cashier’s check, an IOU scribbled on a napkin, or have the money wired directly to the bank with a presidential order attached to it...10-20 days.
So there’s no way, no how I’m leaving the state with the lien release unless I stay in Detroit for 2-3 weeks. I don’t think I’ll be doing that.
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Takuro Spirit
> CSX-55
09/09/2015 at 15:49 |
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I didn’t read the whole thing before posting. That’s a fucked up system, I would walk on that one.
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CSX-55
> Takuro Spirit
09/09/2015 at 15:51 |
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My knee-jerk reaction is to do just that...but the seller seems very reasonable and up-front, and this car is the *exact* vehicle I’ve been searching for for the past 2-3 years...it’s hard to walk away from a pristine, 6k mile version of what you’ve been looking for for so long.
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Takuro Spirit
> CSX-55
09/09/2015 at 15:57 |
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In that case.... I wonder what Steve Lehto would do/say. I’m sure there’s something you could get in writing that would hold up in court IF the bank or seller doesn’t get you the release. Maybe.
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CSX-55
> Takuro Spirit
09/09/2015 at 16:04 |
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Check the replies, he actually responded already in this thread :)
Basically, this is how the system works, and you have to put a little trust in the seller to have a smooth transaction. The most I’ll get from the bank is a receipt indicating the lien was paid off...hopefully it at least indicates I’m the one who paid it off.
PotbellyJoe and 42 others
> CSX-55
09/09/2015 at 16:32 |
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In the times I have dealt with it (State of NJ) the wait was never more than 5 business days. Not all of these were me buying, most were me advising the buyer.
10-20 is ridiculous. Especially in a world of electronic verification and even more so if it is a cash-in-hand and then a 10-20 day wait.
wiffleballtony
> CSX-55
09/09/2015 at 16:36 |
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Am I doing this right?