Second Lienholder

[ProtoYaBish]

What is the name of your state? Michigan.
I run a repair facility where you use your title as collateral for a line of credit. A customer, who's title already had a lienholder, went into default on the loan. I had the vehicle repossessed after being added as a lienholder.
Can the first lienholder take possession of a vehicle that I repossessed as the second lienholder?

 

[Zigner]

What is the name of your state? Michigan.
Can the first lienholder take possession of a vehicle that I repossessed as the second lienholder?

Perhaps.

And that is the best answer you're going to get with the very limited information you've provided.

 

[quincy]

What is the name of your state? Michigan.
Can the first lienholder take possession of a vehicle that I repossessed as the second lienholder?

More than likely, yes.

 

[ProtoYaBish]

Perhaps.

And that is the best answer you're going to get with the very limited information you've provided.

It's a cut and dry question. But thank you for your response.

 

[Zigner]

It's a cut and dry question. But thank you for your response.

Bless your heart.

 

[LdiJ]

It's a cut and dry question. But thank you for your response.

Its not the slight bit cut and dry.

 

[ProtoYaBish]

Its not the slight bit cut and dry.

To know rather or not they could take the car? What else is needed to know?

 

[LdiJ]

To know rather or not they could take the car? What else is needed to know?

The background story.

 

[ProtoYaBish]

The background story.

Thank you! I'm going to edit my initial question.

 

[quincy]

Its not the slight bit cut and dry.

Well ... what is cut and dried is lien priority, with the first lien having priority over the second lien.

 

[LdiJ]

Well ... what is cut and dried is lien priority, with the first lien having priority over the second lien.

Yep, but since he hasn't shared the whole story we don't know what's going on with the first lien.

 

[Taxing Matters]

What is the name of your state? Michigan.
Can the first lienholder take possession of a vehicle that I repossessed as the second lienholder?

It could do that. But the question is why would it want to do that? If you follow the procedures for sale of the car under the applicable state statutes the first lien holder is going to be protected in that process. It would rather you do the work, absent some circumstance that puts its interest at risk.

 

[quincy]

The first lien holder can assert its rights in the property by suing the second lien holder.

 

[ProtoYaBish]

The background story.

Edited.

 

[quincy]

The first lien holder is entitled to payment before you (the second lien holder) is paid - so, although you potentially can sell the vehicle to satisfy your lien, the first lien holder must be paid from the sale proceeds before you can be paid.