I owe 10k on the balance on my auto loan that the dealership took advantage me getting to sign. But two years ago, the finance company mailed my a lien release letter with signed title. The finance company was removed as lien holder and DMV issued new title. If I stop paying can the finance company repossess car, or take me court. Can I sell the car now?
Country relating to Question: United States
State (if USA): California
Hello and welcome,Since they released the lien, you could sell the vehicle typically. However, if payments on the loan were to stop, the lender would likely take legal action. Once they discover their mistake, they may attempt to reinstate the lien against the vehicle. If it has been sold, their only option would likely be to pursue collections against you, even through a lawsuit.If they can prove the release of lien was sent in error and that the balance of the debt is owed, they could prevail in a lawsuit against you.
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15 years legal experience including consumer protection law.
so legally they cannot repo the car, but can take legal action if I wanted to go thhat route? Would it be tough for them to prove there case since they signed and mailed the lien release letter and title?
Hello again,Since they have released the lien on the vehicle, they would not typically have the right to repossess it now. However, if they kept otherwise accurate records, it would not normally be too difficult for them to prove their case since they would be able to provide evidence that they loaned you the money, the amounts that you have paid, and the agreement that you signed with them.
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