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The Expert Podcast brings you firsthand narratives from experts across diverse industries, including private investigators, general contractors and builders, insurance agencies, vehicle specialists, lawyers, and many others.
Today on car titles, we're going to go through some messages that we receive from customers to see how these relate to maybe your scenario. These are examples of the types of title questions and title problems that people have when they call us, to give you an idea of what the answers might be.
The first one comes from Illinois. It says, “Hello, I bought an old truck from a guy that bought it from an old lady when he was cleaning the barn and passed away.” This is a typical story, where it’s got a long story associated with it. The owner passed away, there's a lien on it, the bank has been bought out and then bought out again—it says, “bought out by four banks since 2000.” There’s no way to get a lien release, and the state of Illinois is demanding a lien release for me to get a bonded title. I have a problem getting my old truck, which is a 1965. It doesn’t look like much, but I want to get a title for it.
This is very common. There are a lot of vehicles that have an old lien on the record. The lien might be paid off, but it’s still showing on the title record because when you pay off a lien on a vehicle, the bank doesn’t notify the DMV or the title office for your state. They just clear it in their bank records, and that’s it. They don’t tell the title department that the lien is cleared. They normally just sign the title and give it to the borrower, who can then sell the vehicle. But if that title’s been lost, that lien release has no record.
In this case, you need to contact the current bank that bought out all these previous banks. It’s best to do this in writing—not by phone, email, or text message. Request a lien release document in writing. Don’t just call and ask for a lien release; they’re not going to do it, as nobody’s waiting around to handle lien releases. If you get someone on the phone, they’re likely busy with other jobs, and it’s hard to reach them. So, prepare the lien release document, fill it out, and mail it to the bank, including a return envelope. If the lien is cleared, you’ll get it back. If that doesn’t work, Plan B is to get a court-ordered title. A court-ordered title is where you file a petition and an affidavit in court, and the court may sign the lien release for you after some research. Try the lien release request to the bank first; if that doesn’t work, then pursue a court order title.
The next one comes from California. It says, “I have this vehicle in California. I have the title, but I want to register it out of state. I want to use the Vermont loophole because the vehicle will not pass smog, and I want to put it on the road.” This Vermont loophole that people hear about is not designed to evade smog, taxes, or liens. It’s meant to give you a paper with your name on it that shows you’re the owner if you don’t have a title. If you bought a car, for example, and the seller didn’t give you a title, you could get a Vermont registration as proof of ownership. However, this person already has a title but doesn’t want to register it in California because of smog requirements.
The Vermont registration isn’t meant for evading requirements. If you take it to California to get plates, you’ll still have to pass smog inspection. Some people think they can drive with Vermont plates, but every state requires you to register in-state if you live there. The Vermont plates are valid, but if you drive with them in California, the DMV or police will know you’re from California, and they’ll pull you over if they see you’re evading smog or taxes.
The next one comes from Missouri: “I purchased a vehicle and got the title, but I lost it before transferring it to my name. Can I get a duplicate title?” A duplicate title is a replacement title certificate from the DMV requested by the current owner. If the vehicle is titled to someone like John Smith, only John Smith can go to the DMV, show ID, and request a duplicate. If you lost the title before switching it to your name, you’ll need to contact the prior owner and ask for a replacement. If the prior owner isn’t willing, you could pursue a bonded title.
A bonded title involves filling out forms and getting a surety bond, usually costing about $100. Submit this to the DMV, and they’ll give you a bonded title for the vehicle. Most states accept bonded titles; however, some like Pennsylvania and South Carolina do not. Make sure to review your state’s rules on bonded titles.
Lastly, a question from a woman, possibly named Sally. She asks, “A vehicle was dropped off in my yard, and I want to file for an abandoned vehicle title because I wasn’t given one.” However, abandoned vehicle laws are not a way to get a title. Declaring a vehicle abandoned means you must surrender it to the state, which auctions it off. “Abandoned” doesn’t mean ownership by Finders Keepers. Since this woman said the vehicle was given to her, it’s better to pursue ownership through transfer processes, not abandonment.
These are common questions. Keep them coming! You can call our hotline on our website or email help@car-titles.com with questions, and we’ll be glad to assist. See you in the next video.