Vehicle Stolen, Lein on the vehicle, need advice.

[lil*tymer]

About a month ago my 2003 cbr was stolen outside of my work. i have owned the bike for 3 years and paid cash for it 6800$. Today i get a call at work from my insurance company asking about the loan i took out to pay for the vehicle. WHAT LOAN, i paid cash, apperntly there is a lein on vehicle from credit savings union.

My question is how was i able to register this vehicle with a lein on it? That was the only way i was aware you found out about leins. so now they want to cut a check for credit saving union, how is this possible?

[410440]

sounds like..... nigerian.... scammer at work.

[Redlyne_mr2]

Originally posted by lil*tymer
About a month ago my 2003 cbr was stolen outside of my work. i have owned the bike for 3 years and paid cash for it 6800$. Today i get a call at work from my insurance company asking about the loan i took out to pay for the vehicle. WHAT LOAN, i paid cash, apperntly there is a lein on vehicle from credit savings union.

My question is how was i able to register this vehicle with a lein on it? That was the only way i was aware you found out about leins. so now they want to cut a check for credit saving union, how is this possible?

There may be a lien on it that was never discharged. I would contact the original owner and/or the credit union in question to verify that the lien has been paid out. If it has not then you'll have to deal with that between you and the original owner. If it has been paid out then request a copy of the letter of release from the credit union to provide to your insurance company as well as the registries.

[lil*tymer]

Thats the problem, the guy who i bought it off wasnt the original owner, and forgets who he is. Something seems shady, but its so goddamn stressful losing that much money.

do leins actually not get discharged sometimes?

[rage2]

Ya, they get discharged once it's paid off.

[lil*tymer]

why would i be able to register it then, somewhere down the line someone fucked up? or did i?

[JRSC00LUDE]

Originally posted by rage2
Ya, they get discharged once it's paid off.

Not always. I ran my vin at work once for something to do (we run the provincial personal property registry) and a lien was still registered on it even though it had been paid out three years previous. Sometimes they F it up, not often though.

[rp_guy]

i think you are able to register it.. but you don't actually own it? otherwise why would they charge $30 or whatever the fee is just to check if there is a lien on it (if you could just go in and 'try' to register it and they'd tell you you can't)

[dannie]

Heres the deal. There is nothing that prohibits the registry from registering a vehicle with a lien on it. It does not come up in the MOVES system at all. So the registry agent has no idea and neither does the person who is registering unless a lien search is pulled. (Crappy system) The only exception to this rule is if it is a leased vehicle, then it shows up on the screen saying lessor and lessee. But that is also seen on the registration.

So, your scenario will work one of two ways.

1. The lien was simply never removed. The guy that the lien is against paid it out and the bank just dropped the ball. If that is the case its easy. You call the bank and give them the vin and they should discharge it within 48 hours. (Some are quicker than 48 hrs) Lien gets removed and you get your money.

2. The lien is real and the other guy split with the money and the bank is still owed for the bike. Chances of this are really slim. But it is a possibility. In this case, the insurance co would pay the bank and you would get whats left.

It is always the buyers responsibility to check the vehicle before buying it. It is a $10.45 charge at the registry and it will save your ass.

Oh, and taking the release letter from the bank to the registry won't help. Registries won't discharge it. The bank will have an account at a registry or with a personal property firm and they will remove it. (Thats where the 48 hrs comes into play)

[lil*tymer]

Good to know, quite possibaly an expensive lesson. You would think they would have came after me for the bike after 3 years though

[dannie]

For sure, thats why I am thinking it is the first option. It is very simple if thats the case and its nothing to worry about. However since your insurance co is attempting to pay the bank, I would get moving on it from your end.

[dannie]

Nevermind...... I was gonna repeat myself.

[lil*tymer]

Lein was paid off, but never discharged. So it can happen apparently.

[dannie]

It happens all the time. Just make sure you get the discharge papers sent to you or go to a registry and do a lien search to make sure its done.

[lil*tymer]

Cool, Thanks for the input.