v_therussian

what?! bwahahahaha

luigi524td

If nominated I will not run -- if elected I will not serve

BUT I will gladly take the paycheck, pension, and benefits!

one4thethumb

Not a New Yorker, HOWEVER, the one thing you need to remember, as a purchaser, with regard to Certificates of Title in most States that display a first security interest of a lender, and has been referenced in the some of the posts above, the existing lien stays with the car until it is paid off. Transactions with private sellers often become a bit complicated if they don't have a "legitimate" writing from their lender indicating that the lien has been paid off.

With respect to some of my previous private party sales, I have accompanied the seller to his bank, with title to the car in hand, to have an authorized official collect what was outstanding on the car note, endorse the title, and then travel to the local SOS office to have the title transferred.

If, as a purchaser, you pay cash for a vehicle that still shows a lien encumbering the title (i.e. it has not been paid off) you do not assume any greater responsibility for the payment of the obligation made by your seller, but your vehicle remains collateral for the obligation and could be repo'd if your seller defaults on his obligations to pay off the car note. The fact that the seller fails to secure a release of the lien from the title is a pretty fair indication that your seller has no intention of paying off the loan.

As they say in that dead language: CAVEAT EMPTOR (LET THE BUYER BEWARE).

Okay, as you were . . . . I am off my soap box.

EDIT and UPDATE: By the way, it is not illegal to accept a transfer of title to a certificated vehicle that it is encumbered by an existing security interest (a lien), just foolish.

Unlike vehicle acquisitions, in real estate transactions and the purchase of your personal residence, cottage or investment properties, you have the benefit of title insurance and (more likely than not) a title company or escrow agent that facilitates matters for you and helps to insure that the funds you are providing for the purchase will be used to pay-off the existing mortgages encumbering the properties being acquired.

EDIT #2: ONE LAST THING:
As stated above, it is not illegal to transfer title in the manner described above, HOWEVER, the particular loan documents executed by the borrower who had the certificate of title encumbered by the lien of his/her owner may have a provision prohibiting the transfer of title without having paid off the lien in full. So, if you still proceed with a transfer of an encumbered title (even if the loan is in good standing and no payments have been late and the loan is not otherwise in default) and the lender catches wind of it, it is possessed with the ability to repo the car.

pukka

If the car was originally registered in NY then its most likely the DMV already has the lienholder information in its database. So when you try to change the registration by selling it a "flag" would come up and then you would have to show proof that the lien was paid off - usually a letter from the bank.

Its a pretty common mistake for DMV's to mail a car title to the owner instead of the lienholder. If the bank was on top of things you would have already been notified since its your responsibility (not the DMV) to make sure the bank gets the title.

Bottom line is that even though you have the title, the lienholder can still take whatever action described in your loan contract to "protect" the collateral until the lien is released - whether you even know or not. I wouldn't attempt to sell, let alone buy, a car that has a lien tied to it without fully understanding the potential dangers.

melimel

My cousin works for a repo company and they find the cars through myspace, email, facebook,etc. They've had girls hook up with guys and then once they are in the car the company is in legal posession of the auto.. If anyone will repo the car it is the bank.. NYS does not care, the bank will. If your up to date on payments and you need to sell the car to pay off the remaining loan, one month after should be fine, no? The state doesnt care who registers the car. Its the bank you have to worry about. If your more then 3 months behind on payments, chances are they could be looking for you alreeady. Im not saying this is the case Mike, by no means, Im just saying tons of people sell their cars without them being paid off. Then they pay them off, so that shouldnt be a problem unless something deeper is going on I wouldnt worry.

pukka

Damn!!

nomis_nehc

^ oh what the...!

mikes 5

Thanks mel, I figure it was ok as long as I paid the rest of the balance off.

melimel

i kid you not, he told me that they meet on facebook, myspace, etc. set up a meet up date, b.s about the car, once the girl is in the car its legally the repo companys.. crazy.. he has some amazing stories