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  1. #1
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    Default Attempted Repossession with No Lien on Title

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

    There was an attempted repossession on my brother's car, the title he has says "no lien", we then requested another title from DMV after the attempted repossession to make sure that someone did not exercise a lien in the time between when the first title was issued and the attempted repossession.

    I guess my question is wouldn't the bank that issued the loan that was used to purchase the car have to exercise the lien (even electronically) before attempting to repo the car? He was not in-arrears with his payments either and the bank admitted that it was a wrongful repossession.

    KJ

  2. #2
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    Default Re: Attempted Repossession with No Lien on Title

    if someone takes a car without a lien on it it is auto theft! they allready admitted it was wrongfull, did they say because there was no lien?

  3. #3
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    Default Re: Attempted Repossession with No Lien on Title

    Quote Quoting TheJKH1999
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    if someone takes a car without a lien on it it is auto theft! they allready admitted it was wrongfull, did they say because there was no lien?
    wrong. the lien itself does not allow repo even if there was one. The contract between the two parties is what allows for a repo.

    all a lien does is prevent title from being transferred.

  4. #4
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    Default Re: Attempted Repossession with No Lien on Title

    Quote Quoting jk
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    wrong. the lien itself does not allow repo even if there was one. The contract between the two parties is what allows for a repo.

    all a lien does is prevent title from being transferred.
    WRONG! Not in VIRGINIA. While you can't repo on a mechanics lien, a lien that is security for a loan can be foreclosed once you are in default. Of course, you can't be in default without a contract, but the contract itself doesn't need to provide for repo, it's inherent in the law here.

    However, all that is moot. It's clear here that THERE indeed was a loan contract. While he might have had a title marked NO LIEN, that was either in error or a copy that predated the lien.

    I have no clue what the poster means by "exercising the lien"? It's pretty clear they had one recorded. All that has to follow is the borrower to default and repo becomes legitimate.

  5. #5
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    Default Re: Attempted Repossession with No Lien on Title

    may apologies.

    Maybe you can help a bit more Ron. I cannot find any statute that allows a repossession without a court action first due to a security interest unless agreed to by the parties.

    If there is no such law, the lien itself would still not allow for a repossession on it's own. It would seem that that lien, along with the note proving the interest taken before a court would be required before a repossession unless the underlying contract allowed allowed for repo, right?


    I have no clue what the poster means by "exercising the lien"?
    I think he is referring to having the lien registered on the title.


    It's pretty clear they had one recorded.
    I read it as just the opposite. Both their existing lien marked "no lien" but then from this:

    we then requested another title from DMV after the attempted repossession to make sure that someone did not exercise a lien in the time between when the first title was issued and the attempted repossession.

    I guess my question is wouldn't the bank that issued the loan that was used to purchase the car have to exercise the lien (even electronically) before attempting to repo the car?
    I read that there was no lien recorded at all against the title.

  6. #6
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    Default Re: Attempted Repossession with No Lien on Title

    Quote Quoting jk
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    Maybe you can help a bit more Ron. I cannot find any statute that allows a repossession without a court action first due to a security interest unless agreed to by the parties.
    Virginia Code 8.9A-609.

    I think he is referring to having the lien registered on the title.
    He said he had a printed title that was marked NO LIEN. However, that doesn't mean one was not subsequently recorded. This sort of thing happens all the time. Either someone gets a title loan or the loan was inappropriately released and rerecorded.

    He did admit that his brother was making payments (albeit NOT IN DEFAULT) on the loan.

  7. #7
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    Default Re: Attempted Repossession with No Lien on Title

    flyingron;460897]Virginia Code 8.9A-609.
    and I was right there.


    He said he had a printed title that was marked NO LIEN. However, that doesn't mean one was not subsequently recorded. This sort of thing happens all the time. Either someone gets a title loan or the loan was inappropriately released and rerecorded.
    that is what I took the; "we applied for a new title" and subsequent statement about exercising the lien, to address and from what was stated, I took that as they still found no lien recorded.

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