Quote Quoting hopej50
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They showed me their title..and at the bottom it states: "THIS VEHICLE TITLE IS NOT ELIGIBLE FOR TRANSFER - USE THE CONTACT ADOT AT WWW.AZDOT.GOV TO ASK FOR MORE INORMATION". So, I cannot figure out how the lenders of the two different registration loans would extend credit with that in place
Not sure why you think that. The ADOT statement is a warning to a potential buyer of the vehicle that there is at least one lien against it. Such has nothing to do with placing a junior lien on the vehicle - no different than placing a 2nd mortgage on your home.

Quote Quoting hopej50
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This lien. . . is for a huge amount of money (over $100,000.00)
Then I suggest that you stop trying to "help" these folks and let their attorney advise them. While I could be wrong, I doubt very much that this type of a "loan" is a typical title or registration loan as I doubt lenders like Speedy Cash or Title Max would loan $100k.

Des.