Results 1 to 8 of 8
  1. #1
    Join Date
    Oct 2011
    Posts
    3

    Default Bought Car Loan Through Major Bank, Dealer Signed Title

    My question involves an auto loan or repossession in the State of: Iowa/Missouri

    A number of months ago, I bought a car and financed through a major bank. They paid off my old car loan and rolled into the new loan.
    A week after buying this car, the dealer sent me the title signed with NO Lienholder or anything. I took title and got car titled and registered in my name, not understanding about adding a lien.
    Now, of course bank and dealer are trying to contact me to add the bank as a lien holder.
    Do I have to add them?
    If it's titled in my name isn't it really mine? I understand having to pay the loan back...But what can they do?
    Couldn't I sell it out right? Can they repossess it?

    It's a mess, but now I upset they were the ones who shouldn't have sent me a signed title...
    Any advice?
    Thanks!

  2. #2
    Join Date
    Sep 2010
    Posts
    19,753

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    No doubt in that mess of papers you signed was the authority for them to lien the vehicle as security for the loan.
    They could call that loan if you breach it. Let them put the lien in place.
    You can't steal the car.

  3. #3
    Join Date
    Oct 2011
    Posts
    3

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    So I would be stealing it if I didn't let them place lien on it? I'm sure the authority is in the purchase/loan contract, but why do I have to do it..Can't they just place the lien?

    The dealer was the one who screwed up by signing the title over to me without putting lien on first..Isn't this a civil matter? Yes, they could call the loan, but if I don't have car, what can they do? Send me to collections, etc. Correct?

    Thanks for the reply...

    Couldnt I sell it and keep current on payments?

  4. #4
    Join Date
    Sep 2010
    Posts
    19,753

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    What they can do is sue you in court. They can then lien the car, reposess it, and bill you for the difference between what this now USED car is worth (less than you financed most likelY) and how much you owe them for the debt and their legal fees in recovering all this.

    Just because they make a mistake in the paperwork doesn't mean you get a free car. Get real Dog. Are you over 18?

  5. #5
    Join Date
    Oct 2011
    Posts
    3

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    Yes, I'm over 18! I came here for advice. Legal in nature. I know it's not right, but like I had said, they gave me a free and clear title. Can I do as I wish on it? How often are they going to sue over state lines (I have since moved out of area)? I have been screwed by banks in the past for mistakes on my part. Why cant I do the same to them when they royally messed up?

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    Read your contract. I expect you'll find that you agreed to cooperate with the placement of a lien and that if you breach your contract the car is subject to repossession.

  7. #7
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    They have a term for what you are thinking. It is called fraudulent conveyance. The state will cooperate by providing you with free room and board, as well as nifty uniforms and metal jewelry.

  8. #8
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: Bought Car Loan Through Major Bank, Dealer Signed Title

    Normally, the bank holds the title & has a lean on it. Now you have the title w/o a lean. Unusual situation. What does your contract say? You cannot be required to do more than the contract requires. Its not wrong or right, its just the way it currently is. If you are doing everything in the contract you are required to do then they have no cause of action against you.

    What does this mean to you? The only advantage is that you can sell the car, trade it in, have it crushed w/o needing permission from the bank. Assuming the contract does not require you to provide them the title ... and who would hold the lean .. I would expect that once you bring the title over to them then they would take the title.

    You can add them to your title yourself. I would not do anything for a bank I am not legally obligated to do.

    1. Sponsored Links
       

Similar Threads

  1. Paid Off Car Loan Years Ago, Title Never Given to Me, Bank Sold
    By Booper2010 in forum Vehicle Registration and Title
    Replies: 1
    Last Post: 12-11-2010, 07:05 AM
  2. Replies: 1
    Last Post: 07-22-2010, 12:13 PM
  3. Seller Disclosure: I Bought a House with Major Defects Sellers Knew About
    By mom119 in forum Buying, Selling and Conveying Real Estate
    Replies: 7
    Last Post: 04-23-2010, 07:01 AM
  4. A Major Car Dealership Dealer Applied for a Credit Car Without My Approval
    By abusedbydealer in forum Cars and Dealerships
    Replies: 1
    Last Post: 08-15-2009, 01:40 PM
  5. Dealer Shut Down Before Title Signed Over
    By lvargas71 in forum Vehicle Registration and Title
    Replies: 4
    Last Post: 01-31-2009, 04:40 AM
 
 
Sponsored Links

Legal Help, Information and Resources