Lien on a title?
Le Mans Master
Joined: Nov 2004
Posts: 7,186
Likes: 45
From: detroit area
i take a loan out for 5,000 and i put my vette up for collateral ..... if you dont pay on the loan, they take the car......... it's the banks until the loan is paid...but you still drive it/etc...
b
b
Race Director
Joined: Jul 2004
Posts: 12,680
Likes: 329
From: Scottsdale Arizona
Originally Posted by Jughead
What exactly does that mean? Can someone give an example?
Thanks.
Thanks.
Burning Brakes
Joined: Nov 2005
Posts: 1,143
Likes: 0
From: Leander Texas
A lean means that the vehicle is used as colateral on a loan. Before the vehicle can be sold to a new owner, the Lien Holder (bank) must sign a lein reliese. A lein Reliese is the banks verification that the vehicle has been paid off, and the vehicle now has a "clear title".
I would stay away from any vehicle that has a lein on the title
unless you can definatly verify with the lein holder listed on the title that the vehicle has been paid off. Don't trust the seller until you confirm with the bank.
I would stay away from any vehicle that has a lein on the title
unless you can definatly verify with the lein holder listed on the title that the vehicle has been paid off. Don't trust the seller until you confirm with the bank.
Le Mans Master
Joined: Nov 2001
Posts: 8,647
Likes: 1,871
From: LONG ISLAND
2025 C3 ('68-'73) of the Year Finalist - Unmodified
2024 C3 of the Year Finalist - Unmodified
2023 C3 of the Year Finalist - Unmodified
Here Ya Go........
[B]HERE YA GO........[/B] i'm in the auto business & do this for a living.
When you buy a car new or used & you take out a loan, the bank requires a "LIEN" be posted on the title. This is protect their interest in the car they have financed. That means that you can not sell the car untill the lein has been satisfied with a "LIEN RELEASE" in NY it's called a 901 it states that the bank's security interest in the vehicle has be satisfied ( that the loan has been paid ). DO NOT PURCHASE ANY VEHICLE with a LIEN on it unless you have an ORIGINAL SIGNED, SEALED OR STAMPED letter from the bank, stating the loan is paid without that, there is no proof that the person selling it owns it free & clear. This is what is refered to a clear title. Some people after they pay off a car apply for a new clear title, others dont, it doesnt matter as long as there is a letter of satisfaction. Hope this helps.......
ZIXXX PACKER
When you buy a car new or used & you take out a loan, the bank requires a "LIEN" be posted on the title. This is protect their interest in the car they have financed. That means that you can not sell the car untill the lein has been satisfied with a "LIEN RELEASE" in NY it's called a 901 it states that the bank's security interest in the vehicle has be satisfied ( that the loan has been paid ). DO NOT PURCHASE ANY VEHICLE with a LIEN on it unless you have an ORIGINAL SIGNED, SEALED OR STAMPED letter from the bank, stating the loan is paid without that, there is no proof that the person selling it owns it free & clear. This is what is refered to a clear title. Some people after they pay off a car apply for a new clear title, others dont, it doesnt matter as long as there is a letter of satisfaction. Hope this helps.......
ZIXXX PACKER
Safety Car
Joined: Nov 2004
Posts: 4,359
Likes: 57
From: Mundelein Illinois
I though if there was a lien on the car. The bank will not release the title until the lein is payed off. If someone has a title and it states a lein. Shouldn't you have the letter from the bank showing title is clear, or call the bank on the title to be sure the title is clear.
Corvette Stories
The Best of Corvette for Corvette Enthusiasts
Corvette ZR1X Will Be Pacing the Indy 500, And Could Probably Race, Too!
Verdad Gallardo
Top 10 Corvettes Coming to Mecum Indy 2026!
Brett Foote
Top 10 C9 Corvette MUST-HAVES to Fix These C8 Generation Flaws!
Michael S. Palmer
10 Revolutionary 'Corvette Firsts' Most People Don't Know
Joe Kucinski
5 Reasons to Upgrade to an LS6-Powered Corvette; 5 Reasons to Stay LT2
Michael S. Palmer
2027 Corvette vs The World: Every C8 vs Its Closest Competitor
Joe Kucinski
10 Most Common Corvette Problems of the Last 20 Years!
Joe Kucinski
5 MOST and 5 LEAST Popular Corvette Model Years in History!
Joe Kucinski
2027 Corvette Buyer's Guide: Everything You Need to Know!
Joe Kucinski
Thread Starter
Senior Member since 1492
Joined: Aug 2000
Posts: 87,911
Likes: 156
From: Just because I'm paranoid doesn't mean people aren't out to get me...
St. Jude Donor '09
Originally Posted by Z-man
Oh Oh...what have you done Jughead?? 
Nothing......yet. I haven't been in any trouble with my wife in a while, it's time to stir the pot.
I've been reading about all the suggestions when buying a used car and never really understood what a lien was. I didn't know you could put your car up as collateral on a loan.
If the current owner says no liens, how can you check?
7th Gear
Joined: Sep 2006
Posts: 7
Likes: 0
If a bank is the lienholder, their name will be printed on the pink slip (here in Cali), sort of like they are co-owners of the car. The bank will also HOLD the pink slip until the loan is paid off. Once the loan is paid off the bank will literally sign off the pink slip, letting the world know the loan has been paid, they will then send the signed pink slip to the owner, who thereafter has free and clear title. Only the owner's signature is now needed to transfer the car.
Safety Car
Joined: Nov 2004
Posts: 4,359
Likes: 57
From: Mundelein Illinois
Originally Posted by Jughead
Nothing......yet. I haven't been in any trouble with my wife in a while, it's time to stir the pot. I've been reading about all the suggestions when buying a used car and never really understood what a lien was. I didn't know you could put your car up as collateral on a loan.
If the current owner says no liens, how can you check?
As dad always said Pay cash, because the best car is a payed for car.
Melting Slicks
Joined: Jul 2004
Posts: 3,296
Likes: 8
From: Avon, Indiana
In most states, it's like California. The owner gets the title with the lienholder having signed the document once the loan is paid. There are some states, however, where the owner keeps the title, even if there is a lien placed on the vehicle.He might be showing you a title with no lien, but there might be one recorded with the county or state (depending on the state). Have DMV run the VIN# to be safe.
Pro
Joined: Oct 2004
Posts: 663
Likes: 0
From: Honolulu Hawaii
I had a different situation with a lien on the '68 I just purchased, the state actually had a lien on the vehicle due to the fact that the owner was arrested for a DUI and part of the court order was to surrender the plates for that vehicle, which he never did... I had alot of paperwork and runing around town for a couple of weeks to get this cleared up...I wish it was just a bank lien... probably would've been easier to get the title..
Le Mans Master
Joined: Nov 2001
Posts: 8,647
Likes: 1,871
From: LONG ISLAND
2025 C3 ('68-'73) of the Year Finalist - Unmodified
2024 C3 of the Year Finalist - Unmodified
2023 C3 of the Year Finalist - Unmodified
New York
Originally Posted by randyredleg
In most states, it's like California. The owner gets the title with the lienholder having signed the document once the loan is paid. There are some states, however, where the owner keeps the title, even if there is a lien placed on the vehicle.He might be showing you a title with no lien, but there might be one recorded with the county or state (depending on the state). Have DMV run the VIN# to be safe.
EVERY STATE IS DIFFERENT:
ZIXXX PACKER
Melting Slicks
Joined: Mar 2006
Posts: 3,342
Likes: 7
From: Connecticut
Originally Posted by bobs77vet
could be a mechanics lein........some states allow mechanics to file liens on cars for non payment of repair services
A lein is basically means the person who has posseion of the car doesnt quite own it 100% for one rason or another.
Which means they can not legally sell it
Team Owner
Joined: Oct 2004
Posts: 23,831
Likes: 10
From: Springfield MO
St. Jude Donor '07
Originally Posted by Bob Onit
A lein is basically means the person who has posseion of the car doesnt quite own it 100% for one rason or another.
Which means they can not legally sell it
Burning Brakes
Joined: Nov 2005
Posts: 1,143
Likes: 0
From: Leander Texas
Originally Posted by 427SIXPACK
IN NEW YORK, you get to hold your title , & if there is a lien on it it's typed on the front, sometimes there are multiple liens.
EVERY STATE IS DIFFERENT:
ZIXXX PACKER
EVERY STATE IS DIFFERENT:
ZIXXX PACKER
Drifting
Joined: May 2005
Posts: 1,909
Likes: 6
From: Lake Arrowhead - Georgia > 72 Base Coupe & 74 BB Roadster
For example....when I bought my 72 for 14K.....we had to go to the seller's credit union and pay off his 22K balance. 
I wrote his credit union a check for 14K ... he wrote his credit union a check for 8K and handed me a "lien free" title, a bill of sale showing 14K and the keys!
I wrote his credit union a check for 14K ... he wrote his credit union a check for 8K and handed me a "lien free" title, a bill of sale showing 14K and the keys!
Drifting
Joined: Oct 2005
Posts: 1,501
Likes: 0
From: Old Skool, NY
Originally Posted by Jughead
Nothing......yet. I haven't been in any trouble with my wife in a while, it's time to stir the pot. I've been reading about all the suggestions when buying a used car and never really understood what a lien was. I didn't know you could put your car up as collateral on a loan.
If the current owner says no liens, how can you check?
I never bothered to have my title rewritten without the lien notice and DMV says it doesn't matter.
The car got flooded a month ago with 26k miles.
Lien release:
Race Director
Joined: Oct 2000
Posts: 11,891
Likes: 3
From: Kansas City, MO ...I'd like to go fishing and catch a fishstick. That'd be convenient. - Mitch Hedberg
Originally Posted by I'm Batman
That's not quite accurate, but it's close enough. The lienholder has an interest in the collateral property, but not ownership.