Auto Accident\Title

[RJ2011]

What is the name of your state (only U.S. law)? Oregon

My sister has a car that was financed but the company she financed through went out of business and just charged off the account.
Trying to figure out who would now hold the title or if there would be a lean on it if it was charged off.
She was recently rear ended in an auto accident and the other persons insurance wants to total the car out but wants the title, she doesn't have it and doesn't know who to contact to get the title.


Any thoughts?

 

[Labtec600]

She never received a copy of the title? I am guessing at the least she had to have some paper work from the company. May have to go down to the DMV with that paper work in hand to apply for another title.

 

[RJ2011]

She never received a copy of the title? I am guessing at the least she had to have some paper work from the company. May have to go down to the DMV with that paper work in hand to apply for another title.

She has the paperwork on when she bought the car but nothing was ever sent to her when they went out of business or when they charged off the account.
So would there even be a lean on it or is it just her car now?

 

[justalayman]

if there was a lien on the title, there is still a lien on the title until the lien holder releases the lien.

She needs to speak with the folks at the DMV to figure out how to get the lien released if the lien holder actually is out of business and nobody took over their accounts.

 

[RJ2011]

if there was a lien on the title, there is still a lien on the title until the lien holder releases the lien.

She needs to speak with the folks at the DMV to figure out how to get the lien released if the lien holder actually is out of business and nobody took over their accounts.

So what if no one took over the account? Does that mean there is no longer a lien on it?

 

[justalayman]

no. it means there is a lien on it that will be a pain in the butt to get removed.

 

[InsaneJane]

She should ask 'How much they are claiming for salvage value?'
If it is low enough, then just have the ins co pay the differebce then scrap the vehicle.

 

[RJ2011]

She should ask 'How much they are claiming for salvage value?'
If it is low enough, then just have the ins co pay the differebce then scrap the vehicle.

They are offering $3,000 cash for a car valued at $5,500 and that would be if she keeps it.

 

[Labtec600]

Are they giving you any flak about the lienholder if you keep it? You're a claimant so they may not. Edit - but you will be subject to your state laws about total losses.

But if you're going to turn the vehicle over to the insurance company, that lien holder is still going to be on the title. With the lien holder still on the title, you're not getting a check because the insurance company can't do anything with the title.

Talk to the total loss rep - I don't know if there is some sort of paperwork that can be filled out for this type of situation but you will probably end up having to get another title from the DMV which may take some time.

 

[justalayman]

often when a vehicle is totaled, the title must be turned into the state and a salvage title is issued. Haven't checked for the OP's state to be certain in this situation.

 

[Labtec600]

often when a vehicle is totaled, the title must be turned into the state and a salvage title is issued. Haven't checked for the OP's state to be certain in this situation.

Yes but a lot of states will waive that if the vehicle is over a certain age - then they do not care. PA is one of the states i know that doesnt care how old the vehicle is and a salvage title has to be picked up...which would put the OP back in the same situation as if he turned the vheicle over.

 

[justalayman]

Yes but a lot of states will waive that if the vehicle is over a certain age - then they do not care. PA is one of the states i know that doesnt care how old the vehicle is and a salvage title has to be picked up...which would put the OP back in the same situation as if he turned the vheicle over.

that is one reason I said; often. I have no idea if Oregon treats things the same way as PA does. The DMV should be able to provide the answers and that is why I suggested contacting the DMV earlier in this thread.

 

[RJ2011]

Thanks for the info.

If she keeps the car and just takes the payoff she doesn't need to turn over the title to the insurance company but just send in the paperwork to make the title a salvage, is that correct or would they still request the title?

 

[Labtec600]

Thanks for the info.

If she keeps the car and just takes the payoff she doesn't need to turn over the title to the insurance company but just send in the paperwork to make the title a salvage, is that correct or would they still request the title?

It all depends on the state - like layman pointed out some states make all Total loss vehicles get a salvage title while some states will say if your vehicle is over a certain number of years (lot of times 7) you do not need to have a salvage title

However, they are likely still going to request the copy of the title for ownership.

Have you spoken to them about the issue if the lienholder going out of business?

 

[RJ2011]

It all depends on the state - like layman pointed out some states make all Total loss vehicles get a salvage title while some states will say if your vehicle is over a certain number of years (lot of times 7) you do not need to have a salvage title

However, they are likely still going to request the copy of the title for ownership.

Have you spoken to them about the issue if the lienholder going out of business?

Well the lien holder went out of business last year sometime so I'm not sure who is on it now.
I know that the insurance company offered her $3,000 to allow her to keep her car but they said they would only send the check with her name on it and the lien holders name on it, meaning she wont be able to cash it...
Is that required if she is choosing to keep the car? They should send it with just her name on it right?

She is going to let them put salvage on the title and keep it.
But they are telling her they wont send a check with just her name on it.
Is that right? or is that law?