I have the title to my car! It's mine now, right?

[jonnyGURU]

Interesting situation....

I moved to Illinois. My wife soon followed. She drives the SUV we're discussing today.

To help with moving expenses, I refinanced the SUV.

This helped in many ways:

1. Lower interest rate. Especially since they took another .5% off the loan because it's my bank as opposed to the bank the dealer set me up with.

2. The payments are automatically deducted from my account. The original bank did not support this.

3. There's a "gap" of over a month between the new bank paying off the other bank's loan and my first payment.

So a couple weeks go by and I receive a Florida title in the mail stating that the leinholder WAS Regions bank (the old bank the dealer set me up with) and the registered owner as ME.

I didn't think anything of this, but now I have to get tags for the car.

So I go in to get tags and they tell me they need loan papers from the bank. I called 5/3, the new bank, and tell them this. The guy on the phone says that they have to do a state to state title transfer and he mails me a form. CRAP! My Florida tags expire at the end of January!

I got the form yesterday but start to think.... if I have an Illinois address and re-financed this car in Illinois and I have the Florida title, why wouldn't the new title be an Illinois title?

So today I called and explain everything to the lady at 5/3. She looks in the computer and apparently they don't have any title at all.

Who has the title? I have the title!

So I suppose I can walk into the tag office now and get a tag with the Florida title I received from Regions bank. That's not fraud, right? It's THE title for the car.

I think the only moral dilemna is whether or not I should send the title to 5/3 once I'm done with getting my tags in order. I mean, the way I see it now... I own the car. I still have a loan with them, but if I default I'm thinking they can't take the car... right? Not that I would ever default, but the whole thing does have me wondering.

 

[edro]

They will sue you for the car back if it ever went to that.
or
They would get a settlement awarded in court, for the price of the remainder of the loan.

 

[VanTheMan]

Is there a lien on the title? I have my mortgage through Fifth Third Bank and they've always been pretty good about everything.

 

[nonameo]

Originally posted by: edro
They will sue you for the car back if it ever went to that.
or
They would get a settlement awarded in court, for the price of the remainder of the loan.

they'd probably also have him pay legal fees.

 

[jonnyGURU]

Well.. like I said, I would never not pay on the loan. I have no reason to do that to them.

It's more a "what if" technicality thing. I have the title, in my name. Therefore, I technically own the car. Right?

 

[SandEagle]

"A title-holding state is where the current owner of the vehicle has possession of the vehicle's title, but the current lender/lien holder holds the security interest document. Please note that some states have recently transitioned from title-holding states to non title-holding states. You will want to verify with your state's Motor Vehicle Administration/Department for confirmation. The following are currently title-holding states: Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Oklahoma, South Dakota, Wisconsin and Wyoming."

http://www.eloan.com/s/show/privateautofaqs

 

[TheKub]

All the cars I have owned, I had the title within a week of buying the car but there is still a lienholder on in. Once its paid off you get a letter stating as such so then the car is yours free and clear.

Having the title does not mean there was a mix up and you get the car for free.

 

[waggy]

Originally posted by: jonnyGURU
Well.. like I said, I would never not pay on the loan. I have no reason to do that to them.

It's more a "what if" technicality thing. I have the title, in my name. Therefore, I technically own the car. Right?

no.

you do not own the car. you signed a contract with the loan place. they goofed up and sent the title. it happens (did to me).

i would contact the loan agency.


just because you have the title does not really mean you own the car. try to mess with them and you are going to lose.

so there is no "what if"

 

[waggy]

Originally posted by: TheKub
All the cars I have owned, I had the title within a week of buying the car but there is still a lienholder on in. Once its paid off you get a letter stating as such so then the car is yours free and clear.

Having the title does not mean there was a mix up and you get the car for free.

thats because you live in a state that sends the title out. VERY few do that.

 

[jonnyGURU]

Well... is still works out to my favor because now to get a tag I don't have to wait for the bank to do a state to state title transfer and then fax the loan papers into the DMV.

I'm hoping that now I can just walk into the DMV with the Florida title, apply for the Illinois title through them and have the tags today.

 

[JEDI]

Originally posted by: jonnyGURU
Interesting situation....

I moved to Illinois. My wife soon followed. She drives the SUV we're discussing today.

To help with moving expenses, I refinanced the SUV.

This helped in many ways:

1. Lower interest rate. Especially since they took another .5% off the loan because it's my bank as opposed to the bank the dealer set me up with.

2. The payments are automatically deducted from my account. The original bank did not support this.

3. There's a "gap" of over a month between the new bank paying off the other bank's loan and my first payment.

So a couple weeks go by and I receive a Florida title in the mail stating that the leinholder WAS Regions bank (the old bank the dealer set me up with) and the registered owner as ME.

I didn't think anything of this, but now I have to get tags for the car.

So I go in to get tags and they tell me they need loan papers from the bank. I called 5/3, the new bank, and tell them this. The guy on the phone says that they have to do a state to state title transfer and he mails me a form. CRAP! My Florida tags expire at the end of January!

I got the form yesterday but start to think.... if I have an Illinois address and re-financed this car in Illinois and I have the Florida title, why wouldn't the new title be an Illinois title?

So today I called and explain everything to the lady at 5/3. She looks in the computer and apparently they don't have any title at all.

Who has the title? I have the title!

So I suppose I can walk into the tag office now and get a tag with the Florida title I received from Regions bank. That's not fraud, right? It's THE title for the car.

I think the only moral dilemna is whether or not I should send the title to 5/3 once I'm done with getting my tags in order. I mean, the way I see it now... I own the car. I still have a loan with them, but if I default I'm thinking they can't take the car... right? Not that I would ever default, but the whole thing does have me wondering.

mail them back the title?

WHAT R U NUTS?!

keep it man!

but also keep paying the payments.

and yes, u can walk into dmv and get your stuff w/o the need to involve the loan company because u have the title

 

[FoBoT]

it doesn't really matter who has the title, the bank just needs a lein on the title

 

[GasX]

When I had a loan on my car I had the title in my posession. I ignored the letters from the lender and kept it and registered the car in my name. I paid off the loan early and never worried about getting the title back.

I would not worry about it. As far as defaulting is concerned, don't underestimate a banks ability to come after you one way or another...

 

[Steve]

Lucky you. I live in IL and have owned my car for over a year, and have still not seen the title to this day. IDOT in Springfield does not know how to mail

 

[jonnyGURU]

Originally posted by: JEDI
mail them back the title?

WHAT R U NUTS?!

keep it man!

but also keep paying the payments.

and yes, u can walk into dmv and get your stuff w/o the need to involve the loan company because u have the title

Well... I'm glad I had the title. I was in and out of the tag office faster than ever!

Unfortunately, they took the title from me. When asked if there was a current lienholder on the car, I couldn't lie to the guy. I told him it was 5/3 and he looked up their address in a big book and told me that the new Illinois title would be sent to them.

DOH!

Oh well.

 

[FoBoT]

see? its all good, you got your tag/registration

 

[LAWGIVER1979]

I'm in a similar situation.....I won an auction for a storage unit, and found a title to a car(Maryland). The title had been signed by the previous owners on the seller lines, but whomever they sold the car to didn't sign as the buyer. So, I have a title, signed over to no one, but no car. Is the car mine if I sign the title on the buyer line, and how do I get the car? Mphonaker@gmail.com is my email. This thread is a little old.

 

[bononos]

Got a related question here - if I were to buy a car, how do I find out if a car title is clean without any lien on it? Does the procedure vary by state?

 

[LAWGIVER1979]

You could just get a carfax.

 

[MtnMan]

All the cars I have owned, I had the title within a week of buying the car but there is still a lienholder on in. Once its paid off you get a letter stating as such so then the car is yours free and clear.

Having the title does not mean there was a mix up and you get the car for free.

Probably has to do with your state laws. My state, the bank/lender holds the title till the debt is paid.