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  1. #1
    Join Date
    Sep 2011

    Default Repossession As a Lien Holder

    I live in MI and sold a vehicle to a friend in IN. I placed myself and my boyfriend as lien holders on the title until he makes all payments on the car. When the title came in the mail it had a 3rd lien holder, Child Support. If for some reason my friend does in fact default and I need to repossess the vehicle how does that work when there is a 3rd lien by the state for back child support? Does the state take the car from me? What happens??

  2. #2
    Join Date
    Sep 2010

    Default Re: Repossession As a Lien Holder

    You can't just go take the car because he didn't make payments. That's called grand theft auto. Very bad for you.
    To repo it you must first obey the proper procedure for notification and get court authority. You then just don't keep the car, you sell (in some form that allows asurance that you got market value) and pay off the lien holders in order of priority. This means that after what you have in the car is paid off, the rest of the money goes to the state on the child support arrears.

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