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Last Updated on October 3, 2022 by John Robinson
A lien title means you're entitled to own a property or at least the rights to it. For example, if the property or item in question is a vehicle, having a lien title is usually a sign that the owner whose name the vehicle is registered under still has a loan that they have to pay off. There are other reasons why an automobile or property may have a lien, such as an owner owing the government money in unpaid taxes. Here are a few lien sale common issues and misconceptions.
A Lien Title Is A Bad Thing
A lien title doesn't necessarily mean that it's a negative thing. When you buy a property or vehicle through external financing, such as taking out a loan or leasing it, the property or vehicle will have a lien title. The title shows the registered owner as well as the lien holder. You can keep your car insurance with a lien title; you just need to inform your insurance company that you are the lienholder. Once you've leased your car or paid off your loan in full, the lien title will be removed from the vehicle, and you will be the registered owner.
You Can’t Sell A Car With A Lien
Although most people think it's unlikely, it is possible to sell off a car with a lien title. Although the process might be slightly more complicated, it's not impossible. One way of selling off a car with a lien title is by using a DMV procedure which involves approaching a dealership. This method is relatively simple, although it can be tricky to negotiate and reach a price that you feel is fair. Another way to sell a car with a lien title is by selling it to an individual buyer. Although this process is more complicated with a lot of paperwork being involved, you'll get a higher price for your car.
You Can’t Pay Off A Lien Yourself
You can get some great deals if you sell to a private buyer. However, selling to a private buyer compared to a car dealership company requires you to get some extra cash to pay off the lien by yourself. Contrary to popular belief, you can pay off a lien by yourself. You can either pay off the lien by yourself or have someone interested in buying the car pay off the loan on your behalf. Paying off the loan by yourself is a much simpler process, provided you have the money to do so. After your payment is processed, you can sell off your car without a lien title.
A Lien Sale Property Cannot Be Removed
Some special considerations are taken into account to remove their property from a lien sale. One way of doing this is by paying off all the financial obligations so that your property has no outstanding debts. Special procedures are taken for various types of lien sales, such as auctioning a car with a lien title. In this case, the vehicle is handled in a different manner if the lien title owner fails to repay the debt in time.
You Can’t Buy A Car With A Lien
Purchasing a car with a lien title allows you to buy a vehicle at a lower and much more reasonable price. You should conduct proper research and ensure that your assets are protected during the payment process. You can also acquire the vehicle's history report to assess its condition and value. The prices of new cars are skyrocketing, so purchasing one with a lien title is a more affordable option for most people.
A Buyer Can’t Pay Off Your Lien
In some cases, but not all, a buyer will be willing to pay off your lien. There are several ways you can go about this. If, for instance, you borrowed money from a local lender, your buyer will pay for the lien and then give you the remaining amount you agreed upon, allowing him to acquire the lien title. However, this can get slightly tricky if you're dealing with a non-local lender; traveling to the nearest office might not be very convenient for you and the buyer, and the entire process can end up being tiring and time-consuming.
A lien title does not necessarily have to be negative, nor is it the end of the world. Most car owners think that it is impossible to sell off a car that has a lien title. However, that is not the case at all. There are a lot of common misconceptions when it comes to lien sale issues, and we're here to clear those out. Hopefully, this article will have enlightened you on the many different ways you can buy and sell lien sale properties.
Howdy! I’m John Robinson from Levittown, New York. I am a mechanical engineer for 15 years and already had an established car repair company. I developed a personal relationship with cars since I was a kid. I always love the sounds and smell emitted by a car or truck and even at construction machinery. Since then I have been married but my love for cars only grew.