What Does Lien Records Indicate?

[victoria116]

I want to buy this car but I checked the VIN from AutoCheck and it reported "Lien Records Found." The guy is selling it for his aunt so he does not know what's going on. He thought that everything was clean and that his aunt paid off the car (she's in the hospital now). Anyway, what do you guys think of this record?

 

[Lonyo]

Lien:

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

Might mean it's being used as security against some form of loan, or she hasn't fully paid it off yet?

 

[astroview]

Why not ask autocheck what it means? Without anymore info it sounds like there is a loan on the car not paid off. It's also possible there is another lien on the car from say losing a lawsuit.

I guess if you buy it you could put in the contract a clause that warrants the car is free from all liens, and have it say he or his aunt is liable for any liens from the past.

 

[StageLeft]

Almost certainly the lien record is just indicative of the fact that it, at one point, had a lien on it (ie, a loan0. Check the title. That's the important thing. If the title has no lien holder, then it's free and clear. If on the other hand it does list a lien holder, then it's only free and clear if it also has a paid-off stamp, or something of that nature, on it. You can tell on the title, since it's the important thing.

 

[victoria116]

Title's clean and all it said was "information found, Lien records" so it should be fine to buy?

 

[StageLeft]

Well The two cars I've bought and got the title for did have lien holder at some point. I can't remember if the carfax eventually also noted that the car was paid off or not, but if the title is clean, then the car should be good to go. Use the bill of sale at carbuyingtips.com and if you have this guy's home address/driver's license, etc. you'll be fine should ther ebe anything weird when you try and register, but you should be fine i think.

 

[victoria116]

so theres no danger of us getting the car taken away because of this lien record?

 

[DigDug]

ask an attorney. What YOU think may be a clear title, may not be. It's not worth getting stuck with a loan you now have to pay, for no reason.

 

[sandmanwake]

Don't buy the car. Basically what the lien on the car indicate is that the owner used the car as collateral on some sort of debt or loan. Should the owner not make good on his/her debt, the person who owns the lien can take ownership of the car. The lien follows the car, so it doesn't matter if the person with the debt no longer owns the car. It gets even more nasty when there are multiple liens a property.