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No Security Interest on Vehicle

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J

jim_cad

Guest
I bought a new vehicle in March of 2001.

1. The vehicle in question does not have a secured interest on the title.

2. The title was issued in both my name and my daughter’s name. Sense the date of purchase I have taken my name off the title. The title is in my daughters name only with "no" security interest or leins listed on the title.

3. At the time of sale, I was aware that the purchase agreement and request for title did not request or require a security interest on this vehicle. They prepared the purchase agreement and request for title.

4. Five (5) months after I bought the vehicle I receive a letter requesting that they be put on the title.

5. I have refused to do so.

Is there any legal recourse on there behalf that can be persued against my daughter or me? If I stop payment on this vehicle what would happen? If I decide to sell this vehicle what would happen?

I would like to know is, how do I stand legally?
:)
 


racer72

Senior Member
I am assuming that the title to the vehicle was issued to you instead of the company financing the vehicle and now they want the title.
1. Sounds as if a series of mistakes was made in drawing up the paperwork for the vehicle.
2. This may be a violation of the purchase agreement.
4. The creditor has the legal authority to be listed as the legal owner of the vehicle.
5. They will seek legal action against you.
If you fail to comply with the finance companies wishes to correct the problem, the following will happen. 1. The vehicle will be repossessed. 2. You and your daughter will be liable for any outstanding balance due after the vehicle is sold.
3. If the creditor seeks litigation, you will be reponsible for any legal fees, towing, storage, etc. Your finance agreement with the creditor is the only document that applies. Failure to comply with the contract and the wishes of the creditor will only cause you and your daughter a lot of unnecessary problems.
 

JETX

Senior Member
I agree completely with Racer... and add one more thing.

You are basing your position on the fact that the title was apparently issued without a primary lien being noted on it. However, that oversight doesn't alter the fact that the loan agreement very probably shows that the vehicle is security on the CONTRACT. That is the document that you need to be concerned with... not the title.

And yes, with a clear title you can sell the car without having to clear the lien, but the minute you do, several things will happen:
1) if the lender finds out about the new owner, they will contact the new owner and challenge the sale (fraudulent transfer and reverse the sale). The new owner then would very probably take legal action against you to recover his funds.
2) your outstanding debt to the lender would become immediately due in full (since you sold his security) and, if you fail to pay he would also take legal action against you.

So, as you can see, there is really no way for you to 'win', and a LOT of ways for you to lose if you were to try to 'pull a fast one'.
 

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