Selling a motorcycle with a Lien

[darkside720]

What is the name of your state? New York


At the end of last year I sold my motorcycle, which still has a lien on in for roughly $4500. The guy that bought my bike, went into it knowing that i had a lien that that it will be paid off for an undisclosed amount of time. Although with the payment he gave me for the bike, I had to use some of that money in order not to me evicted from my place, so a portion was used for that as I then used $1500 to pay towards the lien. The person bought it October of last year and has yet to put it on the road due to his concerns of the lien. I told him that I am still paying it off and that he should not worry as that is what I am doing. Its not like I'm defaulting on the loan... anyhow, now this guy wants to take me to small claims court for the fact that he can't get the lien release. I told him to register the bike and enjoy the ride for this summer season and that I would have the balance paid off by Feb of next year. What should I do with this situation and this person is being difficult with coming to terms of agreements....

 

[las365]

How much was owed on the loan at the time you "sold" the motorcycle to him? How much did he pay you?

 

[darkside720]

At the time of sale, the amount due on the load was roughly $6500. He paid me $5500 for the bike. I paid $1500 towards the load and used the rest for payment to my eviction notice. I didn't want to be kicked out of my home and that was the reason for selling in the first place.

 

[JustAPal00]

You sold something you didn't own and spent the money? I think that's illegal!

 

[justalayman]

How do you expect him to register the bike? It is in your name and he cannot transfer it until the lein is released.

You did not have a clear title to the bike and as such, could not legally sell the bike.

You need to either pay off the lein, NOW, or give the guy all his money back and take the bike back.

What should I do with this situation and this person is being difficult with coming to terms of agreements....

He's being difficult? Just wait until the judge rips you a new one!

 

[darkside720]

I understand that the lien is still under my name, however, the title is under his name and speaking to dmv and an insurance company, there is nothing stopping him from registering the bike. Also, i tried to speak with him in a date for payoff, but he doesn't want to compromise. I would buy the bike back, but it will not be for the pay off price that he paid...

 

[justalayman]

I would buy the bike back, but it will not be for the pay off price that he paid...

If he goes to court, yes it will. It is not up to you.

So, tell me, how did he transfer title with a lein on the title. If New York allows this, they are the only state that does.

 

[darkside720]

He signed the title and we agreed that so long as I pay the lien the there will be no problem... and he agreed. Not sure how to handle this with meeting of the minds with this person.

 

[justalayman]

He signed the title and we agreed that so long as I pay the lien the there will be no problem... and he agreed. Not sure how to handle this with meeting of the minds with this person.

Unless he has sent the title to the DMV and it has been returned in his name,he cannot register the bike in his name.

are you saying he has sent the title into the DMV and he now has a title listing him as owner and there is still the original lein on the title?

 

[JustAPal00]

This doesn't make any sense! How can he have a title to a vehicle that has a lean on it in your name? What if he sells it to someone else, and then they sell it to someone else, and then that person wrecks it? When you have a lean on something, the person who owes the money can't transfer the title to someone else until the lein is satisfied.

 

[JustAPal00]

He signed the title and we agreed that so long as I pay the lien the there will be no problem... and he agreed. Not sure how to handle this with meeting of the minds with this person.

Should be one of the shortest meetings in history if he really agreed to pay you for a bike he may never get a title to!

 

[SnowCajun]

He signed the title and we agreed that so long as I pay the lien the there will be no problem... and he agreed. Not sure how to handle this with meeting of the minds with this person.

How can he sign and get a title transfered to his name when it has a lien on it? The title has to be free and clear before you can transfer it, and it wasn't! Something has gone terribly wrong here, the bike didn't belong to you, it wasn't yours to sell until the lien was paid off, it still belonged to the lien holder! You sold something that belonged to someone else and then made money off of it that was intended to go towards the lien. I suggest you make like an Ostrich and bury your head in the sand, you may want to cover the rest of yourself up too. I do believe what you did was illegal!

I didn't want to be kicked out of my home and that was the reason for selling in the first place.

I really don't think you need to worry about evictions, once it's found out what you've done I'm sure you'll have a place to live, and with free meals too! The only problem is that your view may not be so great, it may be blocked by bars, and good luck with your new roommate!

 

[chaosjoe]

i need help from the other perspective

I'm kinda in a similar situation as the other guy that the bike was sold to. i bought a bike from my biological father who i just got in contact with in several years. he bought this bike back in 2001 and made the payments. however the company that the lien was under, went out of business and he never recieved the lien release documentation. i'm so lost because i dont know how to get this lien release and now i'm making payments each month for a bike that i'm not even able to register.

 

[racer72]

Please don't hijack threads, start your own.