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Gerald, Esq
Gerald, Esq, Lawyer
Category: Business Law
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Experience:  30 years of experience
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We are a motorcycle shop in Georgia. We have a vehicle where

Customer Question

We are a motorcycle shop in Georgia. We have a vehicle where the owner will not pick up and pay. We have filed a mechanics lein with the county court in which our buisness resides. Went to tag ofice to find he has gotten a title loan on the bike. Contacted the company with the lein in which he has not made payment for.months. They dont want the bike and loan company gonna write it off from what they said ( taxes ?). BUT they will not give us the title, but they said they will sale the title to.us. What do we do ? We want the bike
Submitted: 1 year ago.
Category: Business Law
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Gerald, Esq replied 1 year ago.

Hello,

Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

I see that you want a phone call and we can do that, but first let me look into a few things and post my response to your question. If after that you still want to speak on the phone we can arrange that, but it costs extra and I don't want you to spend money if you do not have to.

Give me a few minutes to double check somethings for you. I will respond more fully shortly.

Kind regards,

Gerald

Expert:  Gerald, Esq replied 1 year ago.

Hello:

Thank you for your patience. I have found the links that I wanted to share with you. Let me do that first and then explain what you need to do:

http://law.justia.com/codes/georgia/2010/title-40/chapter-3/article-3/40-3-54

http://magistrate.cobbcountyga.gov/v6/downloads/ML.pdf

https://georgiamagistratecouncil.com/wp-content/uploads/_mediavault/2015/09/mag-40-01-Affidavit.-notice.-order.-foreclose-LienR1.pdf

The first is a link to the law. The second and third are links to examples of how to foreclose on the lien. (One is to the procedures followed by Cobb County, but they are the same in any county.)

If I am reading your post correctly, you have obtained the repairman's (or mechanic's) lien on the vehicle. But it does not sound like you perfected or foreclosed on the lien.

Obtaining the lien is the first step. The second step is to obtain an Order from the County Court authorizing you to foreclose on the lien.

You do this by notifying the interested parties (the owner and the other lien holder) that you have obtained the lien and that you now intend to foreclose the lien. The Notice gives them the opportunity to object. To do so they must respond to your foreclosure notice and appear in court to oppose the foreclosure.

If the other lien holder is not interested in the bike they will probably not appear. Or alternatively, they may decide to transfer their interest to you on the cheap (better something than nothing).

Here is a case that you will want to print for your file if you go to hearing:

http://www.lawskills.com/case/ga/id/391/78/index.html

Once you get the Order authorizing you to foreclose the lien you are then supposed to sell the vehicle to recover the lien. The law does prohibit you from buying the vehicle.

With the foreclosure order in hand and bill of sale for the foreclosure sale the other lien and claims are extinguished and a new title should be issued to you.

If the DMV won't register the vehicle to you at that point you may need to sue them in mandamus, but that is a different more complicated issue.

Please note: the proceeding to foreclose a mechanic's lien on a vehicle must be instituted within one year from the time the lien is recorded or is asserted by retention.

I hope the information I have provided is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I will be away from tomorrow morining until Monday.

Please do not forget to give me a positive rating. It adds nothing to your costs but it helps me greatly. Thank you.

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Good luck.

Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Customer: replied 1 year ago.
Ok. So a few questions. It's a 5000.00$ bike.
Title pawn is wanting 1000.00$ for the title.
Should we foreclose on the lein instead of paying 1000.00$
Should we pay the 1000.00$
If the lein is foreclosed on, can a relative buy the bike ?
Would doing a abandond vehicle work best ? And would that cancel oit mechanic lein ? Since the owner and the title place says that they are not coming.to get it
Expert:  Gerald, Esq replied 1 year ago.

The way the law works you need to foreclose on the lien anyway to clear the title. So you should do that.

Once you file for the the foreclosure, if the other lien holder files an opposition you might consider offering the other lien holder some portion to make sure they don't gum up the works. I'm sure you can negotiate it the amount down to where that might be worth your while and theirs. After all for them something is better than nothing.

I hope this additional information is helpful to you.

Kind regards,

Gerald

(Please do not forget to rate me. It adds nothing additional to your costs, but it helps me greatly. Plus it is good Karma for you. Thank you.)

Expert:  Gerald, Esq replied 1 year ago.

Oops. I missed some of your other questions. The law does not prevent you from buying the bike. Have the shop sell the bike and you buy it personally. You already have the mechanics lien so why start over with the abandonment process?

I hope this covers everything. If not let me know.

Kind regards,

Gerald

Customer: replied 1 year ago.
The way the law works you need to foreclose on the lien anyway to clear the title. So you should do that. SO THE TITLE COMPANY SHOULD HAVE THE TITLE, RIGHT ? Since he has not made payment in like 4 months or more. How wod forclosure clear the title ?Once you file for the the foreclosure, if the other lien holder files an opposition you might consider offering the other lien holder some portion to make sure they don't gum up the works. I'm sure you can negotiate it the amount down to where that might be worth your while and theirs. After all for them something is better than nothing. SO IF THE TILTE COMPANY HAS A TITLE LEIN AND NOW WE HAVE A MECHANICS LEIN. HOW DOES THAT WORK ? WHO HAS RIGHTS ?
Expert:  Gerald, Esq replied 1 year ago.

Hello:

Thank you for the excellent follow up question.

Yes the other lien holder may have the paper title in their possession. I can't say for sure. It may just be recorded at the DMV. BUT - Once the Court order the foreclosure sale that Order coupled with the Bill of Sale from the foreclosure sale clears the title under the law. A new clear title is issued by the DMV based on the court order and the bill of sale. The previous owner, and the other lien holder lose their claim to the vehicle.

As far as the other lien holder, if they appear and oppose the foreclosure the court could order you to satisfy their lien if the vehicle sells for more than the value of your lien. You could wind up in a open bidding war or auction of the bike. You don't want that.

As far as who has rights you both do, but the statute grants you the right to foreclose and sell.

The first step is to get the process going and see how things fall out. We can't tell exactly how the other players will react, but the first thing to do is set the table.

To do that you need to start the foreclosure process.

Good luck.

Kind regards,

Gerald

(Please do not forget to rate me. It adds nothing additional to your costs, but it helps me greatly. Plus it is good Karma for you. Thank you.)

Expert:  Gerald, Esq replied 1 year ago.

I can talk to you about this but I have to do this now, because I'm about to go to bed and will not be available until Monday.

Click on the accept button and add your phone number where it says. There is an added cost, but I think it might help you in this instance.

Kind regards,

Gerald

Customer: replied 1 year ago.
Should be the last of this for now. Can you provide forms for a mechanic lein and mechanic lein foreclosure ? Also we sent letter certified mail after filing lein, but our receipt got lost from previous employee. I assume the court sent this out as well.
Expert:  Gerald, Esq replied 1 year ago.

I provided you the forms in my second post ( your county court will also have them):

http://magistrate.cobbcountyga.gov/v6/downloads/ML.pdf

https://georgiamagistratecouncil.com/wp-content/uploads/_mediavault/2015/09/mag-40-01-Affidavit.-notice.-order.-foreclose-LienR1.pdf

Here are the laws you need to review also:

http://law.justia.com/codes/georgia/2010/title-40/chapter-3/article-3/40-3-54

http://www.lawskills.com/case/ga/id/391/78/index.html

Please click on the five stars to rate me. I get no credit for helping you if you do not rate me. It costs you nothing more to rate me. Thank you for your kindness patience, and support.

Gerald

Customer: replied 1 year ago.
We are not inderstanding all the way. If I can foreose on the lein and get a court order to be able and sale the bike, to pay shop first, why would I pay the the company?
Expert:  Gerald, Esq replied 1 year ago.

You would only do that if they oppose the foreclosure, and you think paying them will resolve this more quickly for you. Otherwise you would not make the offer.