How To Put Lein On A Title?

SnakeEyeSS · March 6, 2008

I found a buyer, college kid, for the talon. He needs wants the car and to make payments. How would I go about putting a lien on the title? I think I've found a legal contract on line I can slightly modify for him to sign and have notorized, but still want a lein, so if the payments stop I can go get the car with no legal issues.

hubbycap · March 7, 2008

Not a lawyer but, you would need to apply for a new title in his name with you as lienholder. Check out this form I found online:

Oklahoma Title Application

I would guess the title would be sent to you and until you released the lean as provided on the title itself you would be protected.

dsmazz · March 7, 2008

If he can't get a loan to pay you upfront, why would you want to accept payments? You don't have to answer that. But you are taking all the risk. What if he wrecks the car before he finishes paying it off? Is he going to carry full coverage insurance? With you as the lien holder?

gave20 · March 7, 2008

I found a buyer, college kid, for the talon. He needs wants the car and to make payments. How would I go about putting a lien on the title? I think I've found a legal contract on line I can slightly modify for him to sign and have notorized, but still want a lein, so if the payments stop I can go get the car with no legal issues.

He needs to go to the bank get a loan and pay you upfront for the car. If your going to the be the seller and finance center then I'd be charging him some serious interest, say 10-15%. Even if your setup as the lienholder and he defaults on the loan you'll still have to go through the courts to get the car back. In the meantime he's beat the crap out of the car making it pretty much worthless and since he's a college student he'll have next to nothing to sue for to recoup damages caused. I wouldn't except payment if it wasn't in a lump sum but if you don't want that you need to sit down and see how much repairs could be and the depreciated value of the car during the finance period; that amount is what you should charge in interest.

hubbycap · March 7, 2008

We're talking about a Talon here. Place a small mirror under the nostrils of the kid. Does it fog? If yes, get a good down payment and move that unit.

SKYrado03 · March 8, 2008

If he can't get a loan to pay you upfront, why would you want to accept payments? You don't have to answer that. But you are taking all the risk. What if he wrecks the car before he finishes paying it off? Is he going to carry full coverage insurance? With you as the lien holder?

I just got a shiver down my back…

Theoretically…

Even if he had full coverage, his insurance co. would want you to cover the damages, being the lien holder.

Theoretically, speaking of course.......

Wingnut · March 8, 2008

I just got a shiver down my back…
Theoretically…

Even if he had full coverage, his insurance co. would want you to cover the damages, being the lien holder.

Theoretically, speaking of course.......

What? No they wouldn't. They have zero interest in who holds the title.

As for how to go about taking payments...I say...Take the payments. When he's got it paid off, he gets the keys.

In other news, I may have a line on an '88 IROC roller.

SKYrado03 · March 8, 2008

I just got a shiver down my back…
.....

What? No they wouldn't. They have zero interest in who holds the title.

Hmmm...are you a frequent co-signer? Lien holder? Do you have actual experience in these matters?

If the buyer has minimal or insufficient coverage, they are coming after you!

Wingnut, you have thrown the gauntlet, and I assure you I will research for the truth.

right or wrong the truth will out!

Being that it is the weekend, you will have my answer by midnight, Tuesday March 11th!

gave20 · March 8, 2008

Even if he had full coverage, his insurance co. would want you to cover the damages, being the lien holder.
Theoretically, speaking of course.......

So your saying if I bought a vehicle from the dealership on payments, the bank that I had the loan through (lien holder) would require the dealership to cover any damages? That doesn't make any sense.

-Devil- · March 8, 2008

another thing to consider ... if he skips out on paying it .. and just wants the car to strip down for parts for him and his friends (DSM cars are still fairly popular among some kids)

depending on the laws where you live .. you may can get in more trouble trying to reposses the car ...

i would never consider taking payments on a car, direct the kid to a credit union or some other place like that to see about a loan ... or get em to ask his parents ...

SKYrado03 · March 8, 2008

Even if he had full coverage, his insurance co. would want you to cover the damages, being the lien holder.
Theoretically, speaking of course.......

So your saying if I bought a vehicle from the dealership on payments, the bank that I had the loan through (lien holder) would require the dealership to cover any damages? That doesn't make any sense.

No, when you buy the vehical...the dealership is out of the equation, You, and the bank would be responsible.

You need to restate your equation

SKYrado03 · March 8, 2008

i would never consider taking payments on a car,

Your right!

Cash on the barrel head!

SKYrado03 · March 8, 2008

Even if he had full coverage, his insurance co. would want you to cover the damages, being the lien holder.
Theoretically, speaking of course.......

So your saying if I bought a vehicle from the dealership on payments, the bank that I had the loan through (lien holder) would require the dealership to cover any damages? That doesn't make any sense.

The laws of private (between you and me), sellership seem to break down when there isn't anyone looking.

Wingnut · March 8, 2008

So right now, if I wrecked the TBSS, the insurance company would go after my bank since they are the lien holder? I don't think so. The insurance companies are responsible for the damages, as that's the point of having insurance to begin with.``

I've wrecked a few vehicles, and had a couple totaled. Both with liens on them. The insurance company never even talks to the bank. Matter of fact, they wrote the check to me. I could have cashed it and went to Vegas if I wanted. I'd have still been responsible for repayment of the loan to the lien holder (my bank) though.

The ONLY reason I've ever had an insurance company talk to my bank about ANYTHING, was when I buy a vehicle, my bank needs verification of insurance from my insurance company to make sure that THEIR investment is covered in case of my stupidity.