All too often the vehicle owner/debtor or dealer makes some mistake on the initial paper work so that when the vehicle is registered it results in an erroneous vehicle title.
Correcting these errors is a lengthy and difficult process. The difficulty is directly related to the length of time between initial titling and discovery of the error. Obviously, the sooner the error is discovered the easier it is to correct.
1) VIN errors can either be a DMV or dealer mistake. If it is a DMV error, a copy of the previously submitted title is generally enough to force the DMV to correct the error. Some DMVs, even if they make the error, will still charge you a title fee to correct the error.
2) Another common reason for VIN errors is when Manufactures Statement/Certificate of Origin (MSO) are “switched at birth”. Often times the dealership employee grabs wrong MSO and the debtor submits it without noticing. The debtor has no reason to suspect the VIN on the MSO is incorrect so there is no reason to check. These can be very tricky to correct since the DMV prefers you to correct both vehicles at the same time. If the error is not caught in a reasonable amount of time the other car is often registered in some other state.
Posted in Corrected Title.
Tagged with Corrected Title, vehicle registration, VIN errors.
By barry
– March 4, 2010
Where does the mistake start?
1) The DMV can make a mistake
2) The dealer or debtor could make a mistake at time of registration
3) Someone read it differently.
4) Confusion between VIN and odometer statements
Often times, as with VIN inspection, Collection Managers need a police inspection of the VIN or odometer which can be accomplished by a phone call to local or state law enforcement. However, some states require it to be on a prescribed form.
- It is always best to put it on a state form. Some states will allow out of state law enforcement to correct. If the odometer error was left for some time, the state will often require previous work orders showing progression of the odometer reading. In most cases, the state will require a notarized affidavit explaining events that led to odometer discrepancy.
- In cases where odometer is sig too low and must be corrected. DMVs are much more lenient and typically only require an affidavit.
- Another problem occurs when someone inadvertently marks one of the check boxes for mileage “exceeding mechanical limits” or “mileage is not actual”. It is extremely difficult to remove one of these brands from a title once the title is printed. Called a branded title. Even after correct them through DMV still have to deal with carfax to get that corrected so to not lower the value of your vehicle.
Posted in Odometer.
Tagged with collateral manager, faulty odometer readings, vehicle registration.
By barry
– February 25, 2010
DMVs mistype names often, and if the debtor does not catch it at the time of registration, the Collection Manager should try and catch it and then go back and correct it. If you don’t catch it before you repossess it then you could have a problem applying for the repossession title.
To correct most name issues such as a lien holder’s name or the debtor’s name is misspelled, or a debtor is left off the title you must submit a notarized affidavit and the original vehicle title.
People’s name change whether it’s by marriage, divorce, or death. Collection Managers have to get the vehicle’s title changed.
Situation:
A vehicle is repossessed and the name doesn’t match the name on the contract. In most states the state will require a notarized affidavit explaining that the names on the title are in fact the same as the names on the contract.
Posted in Lien Holder.
Tagged with lien holder name error, vehicle registration, vehicle repossession.
By barry
– February 18, 2010
A common situation is when a debtor pays off the loan and the bank cannot find the title. What is needed is a duplicate title. In most states there are typically two options; debtor or bank.
- The debtor option results in the bank giving the debtor the lien release and he can then apply for the duplicate title himself.
- The Bank Option requires the bank to apply for the duplicate title. There are states that allow the lien holder to request a duplicate title without debtor’s consent. Most states require a Power of Attorney from the registered owner to acquire the duplicate title. As a collection manager, you, have to report current mileage in most states as well as lien release if applicable.
Generally only one Power of Attorney is needed regardless of how many owners appear on the title.
Be very careful when reporting mileage on a duplicate title and understand that all duplicates render previous titles null and void so that if you get a duplicate but find original then original is worthless.
Posted in Lost Title.
Tagged with collection manager, lost vehicle title, vehicle registration.
By barry
– February 9, 2010
There are many hassles that DMV customers deal with which cause all those negative connotations. Not only a time issue, but incorrect or missing forms, and customer service are all reoccurring problems. This is where title services come in. When using these customer-centered businesses frustration and problems are virtually nonexistent. For a minimal fee the expertise of the title service is well worth it.
Time: Most of us have experienced DMVs long waiting lines. You go up to the counter after standing for an hour only to be missing something that forces you to be furthered inconvenienced. A private company makes sure you are aware of all the pertinent information in regards to your situation. Even with a move to internet transactions kiosks can’t do everything requiring in person visits.
Costs: What is the cost of yours or an employee’s time? Not only is there the time of driving to and from the DMV, but loss of time in which you could be doing something more productive. It is an opportunity cost and instead of putting your efforts doing something of value you are wasting it doing something you can hire someone else to do more efficiently.
Customer Service: There is no incentive for a DMV to be nice, friendly, or helpful to its customers. A title agency wants repeat customers that are happy and satisfied with their experience. Title agencies strive to do everything possible to provide customers with excellent service.
The next time you are standing in line at the DMV, looking at your watch, you might think to call a title agency to save you the hassle.
Posted in Vehicle Title Service.
Tagged with DMV, vehicle registration, Vehicle Title Service.
By barry
– February 2, 2010
The lien holder will lose all interest in the vehicle if their lien is not perfected in time and the debtor files for bankruptcy.
Many states have a time limit to properly file a lien to protect against a bankruptcy. The lien holder needs to make sure the vehicle is registered with the proper lien within the time frame required by that particular state.
Whether the vehicle is sold by a dealership or an individual it is crucial that the collateral manager follow through to be sure the lien is filed. Sometimes when a vehicle is sold by a dealership they are required to file the lien. Sometimes the debtor files the lien at the time of registration. Many states allow a lien holder to file a notice of lien online to ensure that it is done on a timely basis.
If this is not accomplished and the debtor subsequently files for bankruptcy protection, your lien is effectively unsecured resulting in loss of asset and loss of protection.
For example in Missouri: the lien must be perfected within 20 days of the date of purchase if you want to be protected in the case of a bankruptcy; otherwise the bankruptcy trustee can and likely will have your lien nullified.
This is not intended to be legal counsel, please consult your attorney for further advice.
Posted in Lien Holder.
Tagged with collateral manager, lien perfection, vehicle registration.
By barry
– January 28, 2010
TOD stands for title on death and is an important aspect of vehicle titling. In essence TOD allows you to say: I own this vehicle and it will go into this person’s name when I die. Once the vehicle’s usual registration processes are dealt with, e.g. VIN, smog, or safety inspection, then all that is required is a copy of the death certificate. With the certificate you can get the vehicle titled in your name. However not all states allow this to be done. The reason for TOD is to keep the vehicle out of probate upon death and a new owner can more easily assume title to the vehicle.
Posted in vehicle title.
Tagged with title on death, TOD, vehicle registration, vehicle title.
By barry
– January 21, 2010
The main purpose of a VIN inspection is to check that the vehicle is not reported stolen. There is a national database that contains the VIN numbers of stolen vehicles which allows the status of vehicles to be determined from any state. VIN inspection also helps with preventing titling errors. If the VIN was mistyped then it is important that it matches with the car which drastically helps curb titling problems.
Usually people don’t catch that there is an error until they are trying to put the vehicle title in their name. That is why it is important that before buying a used or even new car to make sure the VIN on the car matches to the title document. Depending on the situation, different documents are required such as affidavits or odometer statements to prove the VIN is correct.
Not all states require VIN inspections. Some states allow gas station auto mechanics to inspect the VIN, others states require the highway patrol. Some states will even allow auto auctions to fulfill the VIN inspection.
Basically if the VIN information is not accurate then the vehicle cannot be titled in the person’s name leading to unnecessary frustration and a DMV hassle.
Posted in VIN.
Tagged with vehicle registration, VIN, VIN Inspection.
By barry
– January 14, 2010
Acquiring a vehicle title’s lien release from a failed bank is an uncommon matter, but one that needs to be rectified in order to transfer ownership of the vehicle. The current owner shouldn’t sell the vehicle until the lien is released and likewise the new owner and lien holder shouldn’t buy the vehicle with a title that has a lien.
Steps to Follow
- Search the address of the failed lien holder to retrieve the name of the current bank. Contact them and see if they can give you the current lien release.
- Using the name of the bank on the title for the failed lien holder, go to the Secretary of State or Banking Commissioner to inquire what organization bought out the bank in question. If the lien is really old, often times the bank can’t find any record of the loan. In most cases, the successor bank will issue a non-interest letter, but they are not required to do so.
- If the first two steps don’t work, and if it’s an old lien, then there is a set number of years depending on the state that the DMV will no longer require a lien release. The seller can then apply for a duplicate title and a new title will be issued without a lien.
This is a very important matter because the sale could not happen until this issue is resolved.
Posted in Lien Release.
Tagged with collateral manager, Lien Release, vehicle registration.
By barry
– January 7, 2010
