buying a trailer with lien on title - Fiberglass RV
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Old 05-14-2009, 09:45 AM   #1
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I have my heart set on a Scamp, and found one that is within my price range, and there is a lien on the title. What does this mean and i would like advice on what to do about it. i have not purchased yet, and am a little hesitant about it!
Thanks, Kara
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Old 05-14-2009, 09:53 AM   #2
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I have my heart set on a Scamp, and found one that is within my price range, and there is a lean on the title. What does this mean and i would like advice on what to do about it. i have not purchased yet, and am a little hesitant about it!
Thanks, Kara
If I understand lein correctly, It means its being used as colateral or money is owing on it. It is security which someone is using. I would suggest you do not buy it till it has clear title.

Read this
http://en.wikipedia.org/wiki/Lien
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Old 05-14-2009, 09:56 AM   #3
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Hi Kara,

This means that the owner has either bought the trailer on a loan and used the trailer as collateral or borrowed against the trailer. You cannot get clear title of the vehicle until that lean is removed from the trailer or you may become responsible for the debt - though this depends on the area that you live.

I sold a motorcycle to a person without realizing the original lending company had a lien against it. In that case, he wasn't responsible for the loan but anyone doing a title search found the lien and were hesitant to buy it until it was removed (which I promptly did by the way).
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Old 05-14-2009, 10:04 AM   #4
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Well a lot depends if your state is a lien holding state. Minnesota is not so your titles are shipped out to you, with the Bank as the lien holder. When I have sold things with a lien, I've simply met the people at the bank, they give me the check - I go into the bank and get the "lien release" form right from the bank.

Othertimes I've actually mailed the lien release form to the new owners...

With the lien release form, and the old owners title saying that the lien is to xyz bank - you'll be able to re-title the scamp into your name.

I don't see a problem at all with buying a scamp with a lien, just be careful and I would suggest to meet at their bank so you can do the whole process there and get the lien release form from the bank, versus waiting for the seller to mail it.

good luck




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Old 05-14-2009, 10:13 AM   #5
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Bought a Trillium once that came with a lean...I ended up having to replace the axle....!!!!

A lien on the title is not a laughing matter; get the owner to clear it before you touch it; never buy a house, car, trailer, etc. without a clear title.

Sorry.....just couldn't resist !!
Joe
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Old 05-14-2009, 10:40 AM   #6
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Find out who the lien holder is and see what is owed on the trailer.
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Old 05-14-2009, 11:35 AM   #7
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Tim has the right idea. Meet the seller at the bank and get the lien release as you turn over the money. It would pay to find out the amount of the lien to be sure it is below the selling price. Otherwise the seller has to come up with the rest of the money at the time of the sale.

Call the lien holder (bank) for information.
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Old 05-14-2009, 12:36 PM   #8
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If you buy something with a lien against it,you might be buying the lien as well and YOU could be held responsible for the payments owing on the lien, as well as the cost of the trailer.
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Old 05-14-2009, 02:54 PM   #9
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If you buy something with a lien against it,you might be buying the lien as well and YOU could be held responsible for the payments owing on the lien, as well as the cost of the trailer.
again -
As long as you have a clear lien release form, that is all you would need. I would not worry about it as long as you have that in your hand at the time of sale.

search the MN DMV site - or give them a call....
http://www.dmv.org/mn-minnesota/rv-motor-homes.php


To register an RV or motor home in Minnesota, the following must be brought to a Minnesota Driver and Vehicle Services (DVS) location:
  • Current valid title
  • If current valid title is not available, the current vehicle registration
Just as with other motor vehicle registration, if an RV or motor home's [b]<span style="font-size:12pt;line-height:100%">Minnesota title reflects a lien and it has been paid, you can submit a lien release at the same time that you </span><span style="font-size:12pt;line-height:100%">[b]register</span>[b]<span style="font-size:12pt;line-height:100%"> the vehicle.</span>
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Old 05-14-2009, 07:14 PM   #10
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Morgan has the right general approach in my experience; that's essentially the same thing you do when you buy a house with a mortgage -- All three parties meet, you pay the owner, the owner pays the bank off and the bank gives you the lien release.

That saves the owner the trouble of paying off the lien, then applying for new title only to sign it over to you, and you don't have to wait for his new title to arrive before you complete the transaction.
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