Would it be okay to buy an LS with a "lein?"

BrianDye

BrianDye

Dedicated LVC Member
Joined
Nov 3, 2009
Messages
747
Reaction score
2
Location
Monroe
Guy has a 2002 (I think) LSE for sale, but he said it has a "Lien" on the title so it can only be used for parts?


I was thinking of asking him about a trade, and then swapping some parts, like wheels, headlights, bumpers, sideskirts, etc, and then parting it out, or selling it, would that be possible?


Would i be able to get it registered to drive??

http://detroit.craigslist.org/okl/cto/1465727981.html
 
What's the lein for? Usually if something has a lein on it money is owed, and the item can be taken as payment if left unpayed.
 
How much did he want for it?
 
If it has a lien, the only way to get the title in ur name is to pay it off as you probably know. You won't be able to register it because the car can't be put in your name. The car was most likely used as collateral on a personal loan. I'm not sure how he can get away with selling it because if he defaults on the payments the bank gets the car. This can't be legal. It sounds super fishy. I bet he's already defaulted on the loan and the repo guys are going to be looking for his car soon. This would explain why he wants it gone asap. He's just trying to make a quick buck.
 
Do you ever understand what a lien is? Why anyone would even consider buying ANYTHING with a lien on it is beyond me. Don't you already have a LS? Two trucks if I recall in addition.

You're one bizarre little kid.
 
Hey doesn't want the whole car he just wants the lse parts off of it to make his car an unofficial lse like I want to do but I noticed the lien deal on it already. I asked the guy how much for parts and he was only willing to sell parts for outragous prices or the whole car which is not a good idea. I asked for the sideskirts and rear bumper and the guy wanted 700 for which I told him was ridiculous.
 
cannons_custom said:
Hey doesn't want the whole car he just wants the lse parts off of it to make his car an unofficial lse like I want to do but I noticed the lien deal on it already. I asked the guy how much for parts and he was only willing to sell parts for outragous prices or the whole car which is not a good idea. I asked for the sideskirts and rear bumper and the guy wanted 700 for which I told him was ridiculous.
Click to expand...

Well since all of this is illegal I wouldn't suggest any of it. However, if you're going to do it I would suggest low-balling him an offer for the car. He obviously needs to get rid of it asap if he's worried about the repo guys. He most likely is too lazy to start parting which is why he gave you such a ridiculous price. Just a thought but would there be any way to get the info on the lien? It sounds to me like this car is bank owned and will potentially be up for auction in the near future. Also, I don't know if this is even possible but if the owner owes an amount on a loan and he sells the car without the title to someone for the amount he owers couldn't he potentially try to come back and take the car?
 
lol I'd like to see him take the car back if I completely stripped the son of a b*tch. Haha motor, tranny, parts, interior, EVERYTHING put in my car or traded out for CHEAP to other LS members. Shows that :q:q:qgot wha'ts what for trying to do something stupid and that he knows is wrong cause he's an IDIOT who can't handle money

(rant mode off)
 
LOL Yea, if I got it, id just start stripping it, putting parts up in my attic or something until it was just the frame and id tell him he could have it back for 500 bucks :p
 
–noun Law. the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.

get a life!!
 
There are two likely ways to get a lien on a car:
1) Use it as collateral for a financial obligation (eg, a loan or bail bond).
2) Fail to pay your bills (eg, a mechanic's repair bill or rental fees for a storage unit wherein the car is stored) and have a mechanic's lien placed on it.
In either case, it's highly unlikely that it can be sold for parts. I've never seen an agreement that doesn't require that the collateral (the car) be maintained in a condition similar to its condition when the lien was placed on it. (That's also why loan agreements generally require you to carry full coverage insurance with certain minimums.)

I'm not sure if you can purchase a car with a lien on the title (it's possible that you can, but you'd then become liable for the obligation to the lien holder), but I'm almost certain that you can't part it out.

Edit:
Here's what the State of Michigan has to say on the subject:
Examine your title for any liens (bank loans). If there is a lien it must be released by the lienholder in the appropriate signature space, or you may attach a lien termination statement from the financial institution.
-- http://www.michigan.gov/sos/0,1607,7-127-1585_1619-25461--,00.html
Click to expand...
Sounds to me like this deal is a big-time no-go.
 
BrianDye said:
Guy has a 2002 (I think) LSE for sale, but he said it has a "Lien" on the title so it can only be used for parts?


I was thinking of asking him about a trade, and then swapping some parts, like wheels, headlights, bumpers, sideskirts, etc, and then parting it out, or selling it, would that be possible?


Would i be able to get it registered to drive??

http://detroit.craigslist.org/okl/cto/1465727981.html
Click to expand...

Somebody else has an ownership interest in this car. The seller can't legally sell this car without the lien-holder's sign off. Typically the lien holder won't sign off unless the debt that this car is secured against is fully paid off.

It seems that the seller plans to default on this debt and get rid of the asset that it is secured against. This is theft, plan and simple, and you will be a party to it.

Do you normally burgle houses and/or shop lift? Do you mug people? If so, then go ahead, this won't be any different. If you don't do those things, then why start now.
 
Umm, not be too contrarian here, but junkyards are FULL of cars with liens on them. Have you ever checked the lien status before you bought a part off one? Of course you didn't. The police impound and auction cars constantly here and the main buyers are the junkyards. Often the auction states "NO TITLE - BILL OF SALE ONLY". And this is the cops themselves! Just a little food for thought.
 
are you sure your not confused with a salvage title? in NY, once the car hits the boneyard, the title becomes a salvage title, never to see the road again!!
 
To answer the question "Would it be okay to buy an LS with a lien?" directly:

No. In fact, whoever is trying to sell you the vehicle CANNOT legally transfer ownership of the vehicle. The "lien" in and of itself is a sort-of statement of joint ownership. Both parties (the listed lienholder and the physical property holder) must sign off in order to transfer "sole" ownership to you.

]Regarding twinbopilot's post, I am not familiar how it works with government agencies. Maybe the rules/regulations are different.
 
SoonerLS said:
I'm not sure if you can purchase a car with a lien on the title (it's possible that you can, but you'd then become liable for the obligation to the lien holder), but I'm almost certain that you can't part it out.
Click to expand...

You do not become liable for the obligation however the leined property in this case the car can still be legally reclaimed by the leinholder in case of default.

#1fordfan said:
Would i be able to get it registered to drive??
Response..... NO!!!!!!
Click to expand...

Not a definite NO depending on your state. Without a valid release of lein you will be issued a title with the leinholder still listed on it.




That being said I agree with everyone else. Do not get involved.
 
BTW - There was a beautiful '03 V8 at the police impound auction a couple of weeks ago. It sold for $1800, but I didn't bid on it for all the aforementioned reasons...and it was sold "Bill of sale only" which really scared me off.
 
BrianDye said:
Guy has a 2002 (I think) LSE for sale, but he said it has a "Lien" on the title so it can only be used for parts?


I was thinking of asking him about a trade, and then swapping some parts, like wheels, headlights, bumpers, sideskirts, etc, and then parting it out, or selling it, would that be possible?


Would i be able to get it registered to drive??

http://detroit.craigslist.org/okl/cto/1465727981.html
Click to expand...

actually the answer is YES you can..

BUT, you are responsible to satisfy the loan in order to do this legally.

for instance, Bob the LS owner has an ls for 2000$, mikes auto body has a mechanics lien on it for 2000$.

in order for you to LEGALLY purchase this car, you must pay Bob, and Mike 2000$ a piece for a grand total of 4 g's.

then mike and bob both sign off, and you walk away with a clear LS for 4000$

the problem is, if this guy wants to sell AS IS with a lien, you have to imagine that he owes more on the lein than the car is worth....

talk to him and fi nd out who holds the lien and how much. somtimes you can talk them down if the origonal owner has failed to pay.

I bought a 97 neon like this 5 years ago...long story short, it broke down on the hwy, towed it to a shop, shop performed 300$ worth of work on it to find out it was a 1200$ fix. owner said f it, he didn't want it, and wasn't gonna pay for it. I contacted the owner who willingly gave up the title, mechanic signed the lien off, and split what was owed...I bought the car legally for 150$
 
Outkast said:
actually the answer is YES you can..
Click to expand...
That's a good suggestion, but the situation you described is not buying a car with an intact lien: you got a lien release from the lien holder. If he wants to do that, yes, it's certainly possible, but that's the only way he can do it, at least according to the State of Michigan (see above), which is apparently where the OP lives.
 
You must log in or register to reply here.

Members online

No members online now.
Total: 116 (members: 0, guests: 116)
Back
Top