Title - Lien Issue

[MaDDinGO]

I recently sold a friend my car but he had issues registering the car.

The car was orinally owned by my parents and a loan was taken out with the bank. The car was paid off years ago and they recieved a lien release from the bank.

My parents gave me that car and when I registered it, I didn't have the lien release paperwork with me and therefore the car was titled to my name with a lien still on the car.

When I sold the car, he went to register it at the DMV in CT and they would not allow him to register the car because the lien release is in the original owners name (my parents) and the car's title is in my name.

Anyone ever run into this issue? The lien was with North Fork Bank - which no longer exists. (Bought by Capital One) What do I need to do so that the new owner can register the car?

 

[twinrider1]

Look at the New York Bureau of Motor Vehicles site?

Do you have access to original lean release paperwork?

 

[MaDDinGO]

I checked that and DMV.org - didn't find anything that would work in this situation.

Yes, I have the original lien release papers. They are addressed to the original owner (my parents) name. The title of the car is currently in my name. The DMV will not accept the lien release bacause the lien release is not in my name.

 

[twinrider1]

Looking for path of least resistance.....

MAYBE....your local Capital One branch will issue you a document stating they acquired North Fork Bank and that they hold no lien against you.

Either way, I'd then go to the BMV in person, take the parents if possible, papers in hand, ask if they could help you.
It's important to be nice, and not to frame it like you're telling them what to do or asking them to do it for you. If they cooperate, they will be doing it for you, but don't frame it that way.

It seems odd to me that they transferred the title to you in the first place. It's been my experience that my bank holds my title until I satisfy the lien. I'm not clear on how your parents had a title to sign over to you.

 

[SpatiallyAware]

Yeah that's going to be a huge hassle.

Shame on you for registering the car and keeping the lien on it.

In my state, to do this legally you would have to bring your parents to the DMV along with the lien release, and hope to get a decent person there to process it.

I've dealt with a bunch of title issues, and in my state you'd have a hell of a time getting this fixed - it may be easier to transfer the title to your parents, then have them remove the lien, then transfer to your friend before registering with the DMV.

 

[EagleKeeper]

Unless you have a bill of sale or transfer document dated after the lien was cleared, you should give the title back to your parents. They clear the title and transfer to you or friend. The bank can not clear the lien to you.

If you have the properly dated documents then the DMV may accept that the lien was cleared and go from there