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Gerald, Esq
Gerald, Esq, Lawyer
Category: Legal
Satisfied Customers: 2849
Experience:  30 years of experience
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I have a question. I traded my car in december of 2014. I

Customer Question

I have a question. I traded my car in december of 2014. I had a second lien on it and paid it off in June of 2014 so I could trade. Well here we are in November of 2015 and I get a title in the mail for a car I traded a year ago with the them releasing
the lien as of 9/2015. I haven't had that car in a year and I PAID it off months before I traded. So how am I getting it now? Wouldn't the dealership have called if there was a problem? I am confused.
Submitted: 1 year ago.
Category: Legal
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.

You don't have any problem. The DMV made a mistake in processing the lien pay off. The way this works is that once the lien is paid off the lien holder notifies the DMV. In this case there was a delay on one end or the other and the DMV computers issues the clean title late.

You don't really have to do anything, because when you traded the car the dealer had you sign a limited power of attorney so that they could process the paper with the DMV. Eventually, the dealer will straighten this out directly with the DMV and have a replacement title issued (if they haven't already done so).

If you want you can contact the dealership, or the DMV. Or you can just do nothing. This does not create a problem for you, but I would put the title in a safe place in case someone asks you for it (very unlikely).

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 am generally unavailable Friday evening through Sunday.

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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.
Well I noticed that I got a new loan with them and they kept saying something about the title and I had to remind them several times that I paid it off in June of 2014. Then they called me a few weeks ago to tell me the title was in. I reminded them once again I traded that car a year ago.....then I get this in the mail. How did the dealership sell my old car if there was a lien on the title? Cause this said they just released it a month ago. It has been a year since I traded.
Customer: replied 1 year ago.
Also this title was printed in 11/2012. I paid them off in June 2014....
Expert:  Gerald, Esq replied 1 year ago.

Hello:

Thank you for the excellent follow up questions.

The 2012 date is the original title date. The date when it was processed when you purchase it. They simply remove the lien off that title.

The dealer may not have sold the vehicle, or sold the vehicle on a buy here pay here where they don't transfer the title until the new buyer pays it off. There are other possibilities too. The critical point for you is that you have clear uncontrovertable proof that your loan was paid in full.

Again this is more a curiosity for you, you can not have any problems caused by this event.

Enjoy your Thanksgiving.

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.)

Customer: replied 1 year ago.
I didn't wanna get in trouble for fraud or anything because the loan company that had a second lien apparently doesn't know what they were doing. The loan I got after I paid it off had no car lien on it whatsoever. I don't have a receipt where I paid it off...or I can't find it anyway. Do I need to look for it?
Expert:  Gerald, Esq replied 1 year ago.

No. In tis case, Keep the paid off title.

It is enough to prove the car was free and clear.

You can use that as proof even if the lender never placed the lien.

Also you can pull your own credit report. It will show your closed and open loans and accounts.

Good luck.

Gerald

Customer: replied 1 year ago.
I know you say keep the title but they have on there they didn't release it until 9/2015....I traded the car in 12/2014. You see it looks like they released it after I traded.
Customer: replied 1 year ago.
I found where I had the old loan with the car as collateral 11/2012....then I found the new loan 7/2014 where there was no car as collateral so that should cover me correct?
Expert:  Gerald, Esq replied 1 year ago.

Hello:

Sorry for the delayed response. I had to carve the turkey.

Yes, It sounds like you have what you need to protect yourself in the unlikely event something comes up. Put it all in a safe place.

Also consider pulling your credit report. You are entitled to a free report once a year.

https://www.annualcreditreport.com/index.action

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.)