Lender Won't Pick Up Car

stieny1 · #1 03-13-2009, 08:27 AM

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

My husband and I filed bankruptcy in Oct. of 2007 it was discharged April 2 2008 we included a vehicle and stopped paying on it in June of 2007 the bank has yet to come and pick it up. Is there a statue of limitations on them coming and getting it and if so what are they?

Mr. Knowitall · #2 03-14-2009, 05:53 PM

They don't have to pick up the car if they don't want to pick up the car.

stieny1 · #3 03-15-2009, 01:38 PM

So if they don't have to pick up the vehicle where does that leave us? What are we supposed to do with the vehicle? Is there a time frame for them to pick it up? If so what is it and if the time is up how do we go about getting them off of the title?

Mr. Knowitall · #4 03-15-2009, 01:59 PM

There's no time frame. Again, they don't have to pick up the car if they don't want to pick up the car.

If you wish to try to purchase clear title from them, you can contact them and make an offer. If you want to see if they'll agree to accept delivery of the car somewhere, similarly, you can contact them and ask.

jk · #5 03-15-2009, 02:19 PM

if neither of the options are interesting, call the police, have the BK order in hand that shows you relinquished title to the car and report it as abandoned.

Mr. Knowitall · #6 03-15-2009, 02:37 PM

That seems quite problematic - they're the owner of record, so the towing and impound fees will probably come back to them.

jk · #7 03-15-2009, 02:48 PM

I understand your point but owner of record can be different than true owner. The BK would establish relinquishment of ownership. It could be a hassle but without the true owner picking up the car, possibilities are limited.

How about this then; (I would have to research the legal possibilities before recommending actually taking this action)

if this is on OP's property; send a letter demanding the car be removed lest storage fees be imposed. Once the fees exceed the value of the vehicle, or sooner if the laws allow, OP files for a lien on the vehicle or simply takes whatever action is required by law to take title to said vehicle.

It does seem OP would like to claim ownership of the vehicle. Maybe there is a way to do just that if the true owners fail to remove the vehicle.

Mr. Knowitall · #8 03-15-2009, 02:57 PM

The bankruptcy would resolve issues of enforceability of the lien, or the borrower's right to object to repossession if they chose not to redeem the vehicle. It doesn't do anything to change the vehicle's title.

An attempt to unilaterally impose storage fees for a vehicle still owned by the person in possession? Enforceable on what legal theory?

It's not that I don't sympathize here; I do. But this usually happens when the cost of repossession and sale will exceed the likely sale price of the vehicle. The lender doesn't want to incur an additional loss.

This is really something that should be resolved legislatively.

Thinking about it, in some states you may be able to proceed against the vehicle as abandoned, and to obtain title that way. Or to have a cooperative third party work with you, if that approach won't work directly due to your title ownership.

jk · #9 03-15-2009, 03:33 PM

here is a real stretch then;

since OP (or any other in this position) is still technically the owner and the lien holder is refusing to remove the property, how would the courts look at something such as claiming estoppel by silence or an equitable estoppel claim.

The failure of the lien holder to exercise their rights to repo the vehicle would prove their lack of desire to repo. The BK would have removed any rights to claim any money due to them from the loan.

maybe head to court and ask the court to remove the lien due to the lack of action on the lienholders part, the bk absolving the debt and the lienholder allowing the title to remain in the petitioners name.

Like you have said, something does need to be done in this type of situation. It appears to be very common and in itself places a burden on the title holder to deal with something they should not have to.

stieny1 · #10 03-17-2009, 07:33 PM

Thanx for all the posts. And I do understand that the vehicle still belongs to the bank, but I see their refusal to come and get it as abandonment on their part and wish we had more recourse to get a clear title if they aren't going to come and get it.