Vehicle title lien(Az)

[iwannadie]

I was curious about title liens and just thought I would ask around. On another forum someone was trying to sell a motorcycle without a title. Then, he found out that the title has a fairly large lien on title.

Who is liable for that lien at this point, he bought the bike from a friend years ago without a title, just bill of sale. If he owns the bike now is he liable or is the previous owner who put the lien still liable?

I have no interest in this beyond just curiosity on how title liens work in general. It sucks the guy was selling a $950 bike and found an 8k lien on it, kind of a sale killer.

 

[WB9YZU]

Good question.

That's exactly why you don't buy anything, even scrap without a clear title.

Was the loan ever paid off and the Title was not registered back in the original owners name to indicate that the Lien was taken care of?

Or does is the Lien Holder still owed money?

If the Lien Holder is still owed money, the bike is theirs regardless of who possesses it.

 

[iwannadie]

Good question.

That's exactly why you don't buy anything, even scrap without a clear title.

Was the loan ever paid off and the Title was not registered back in the original owners name to indicate that the Lien was taken care of?

Or does is the Lien Holder still owed money?

If the Lien Holder is still owed money, the bike is theirs regardless of who possesses it.

I agree 100% and I would never go near it without a title I was just curious watching it all go down on the other forum.

The seller I guess ran the VIN and contacted the DMV and they told him about the lien and that it is now in a 3rd party collectors hands. The lien was never paid off and is at 8k bucks currently but not in the current 'owners' name as a title was never transfered.

The lien holder(the now 3rd party) owns the bike but who owes the debt to clear the title? The Current 'owner' bought it without the title just bill of sale, would that take him out of the lien debt and ownership of the bike and he now has no right to sell it? I can't see the lien holder coming after him but he is in current possession of it.

 

[Lowrange2]

The bike is owned by the lien holder. If they knew the whereabouts of the bike I'm sure they wouldn't hesitate to have it repossessed no matter who has it at the moment. The lien holders will never come after the person that bought the bike from the guy because his name isn't on the title and there's no paper trail of it changing hands. Without the clear title it can't change possession.

Whoever's name is currently on the title is, and will always be, responsible for that debt.

If the current owner wanted to keep the bike he could pay off the lien in that debtors name to get the title put in his name but that'd only be by choice.

Basically, the guy that bought the bike for $950 has a bike that he can ride around the yard or sell for parts.

If it were me. I'd part it.

 

[iwannadie]

Yea I hope no one on the other site tries to buy it only to have it repossessed when they attempt to register it.

The bike is in rather poor shape, if it were me I would just call the lien holder and tell them to come get it and take the purchase price as a lesson learned.

 

[cf_collins]

Make things interesting. Place your own lien oj the title for the $950 purchase.

 

[WB9YZU]

Lowrange2 is correct, the Person who took out the loan is responsible for payment of the loan.

This situation is sort of like buying stolen property ( which is pretty much what happened). The last one holding the bag defaults all money's when the rightful owner takes possession of their property.

CF ... Right (sarcasm)

 

[kastein]

I'd probably part it... but that's just me.

Oh, and never buy a vehicle without a clear title again. That's the kind of thing you learn by getting burnt, if you didn't already know...