How to Ensure Collections Releases Title

[Alpha147]

My question involves an auto loan or repossession in the State of: Arizona

Hello- I apologize if this question has been answered, although I have not seen it yet.

Just over a year ago I defaulted on my auto loan. The car has never been repossessed & I now have the finances to settle or pay off collections and be done with this thing.

The collection agency or original lender (not sure which) has the title to the car. What is the best way-the best steps-to ensure that the collection agency lives up to their end and releases the title to me? I know they have no use for it once they get their money... but I have read the stories..

Also- Am I able to settle an auto loan or is it necessary to pay the amount in full since it is a tangible piece of property?

Thanks in advance!

[jk]

.

Also- Am I able to settle an auto loan or is it necessary to pay the amount in full since it is a tangible piece of property?

Thanks in advance!

it is up to the creditor. They do not have to accept anything less than full price.


One thing you need to be cautious of: is the debt in the hands of the original lender (and presumable lien holder) or does some collection agency own the debt. If the latter, you may have a difficult time getting a release of lien.



anyway, very little way to assure yourself of no problems. Having a written agreement is very important though as that would allow you to attempt to have the contract enforced should they attempt to renege.

If there is a possibility of a face to face closing, that would be the best.

[Alpha147]

I have been receiving letters from what looks to be a collection agency. If I find this is definitely the case after I begin this process, and I pay them their money, what good does it do them to keep the lien?

[jk]

I have been receiving letters from what looks to be a collection agency. If I find this is definitely the case after I begin this process, and I pay them their money, what good does it do them to keep the lien?

It's not a matter of them keeping the lien but chances are, they don't have the title. It is likely with the original lender and unless the debt is paid in full to them, they do not have to release the lien. So, if the CA paid less than full value for the debt (if they actually bought the debt and aren't simply collecting for the original creditor) which is unlikely, the lien holder will still hold the title.