The Expert Podcast

Well, it's been about 6 months since the famous Vermont title loophole has been cancelled and banned by the state of Vermont and the other states, so what have been the consequences and the fallout from all this with vehicle titles? Look, thousands of people every day purchase vehicles without titles and they need a title solution. For many years, the Vermont loophole has been a go-to fix for that problem, but at the same time, it's also been under fire. Been watching our channel for the last few years, you've seen us talk about the fact that this thing was going to go away. We knew it even 5 years ago. Now that it's gone, what do you do?

What we have seen is the most powerful title loophole as an alternative to the Vermont process is now becoming much more publicized for example the court ordered title process which is eligible in all 50 states used to be that you could only find it on two counties website in the whole country and there are 3,611 counties in the country up until this year only two of them had something on their website about a court order title in fact if you walked into most County courthouses and talked to the clerk and said hey I want to do a court ordered car title they would not know what you're talking about right we've been doing court order titles for 7 eight years but most count didn't know about it and it's fair because most counties also don't know about a dog bite lawsuit right it's not a name that they give to a process it's a type of case that they do in their court but here's the thing now that the Vermont loophole is cancelled and banned what you're finding is more and more courts and every day we're finding more here is one from Le County Pennsylvania here is one from uh IND in Minnesota right instruction guide for a court order title here is one from Indiana court order title application um here is one from also from Pennsylvania inv voluntary transfer of a vehicle in that particular County.

So here's the thing this is the way that the government wants you to get a title now just saying that means a lot of people aren't going to want to do it that way most people want to do it their own way but even when the Vermont process was available this court order Ty actually had some advantages first of all the state of Vermont charged you sales tax on the full book value of the vehicle didn't matter what you paid for it second of all you had to wait for the Vermont to process of registration get a license plate then take that to your state to exchange for a title A lot of times people didn't do step two because they figured well I already got a license plate and I'll drive around on it but that's going to come back to haunt you because when you do go to switch it over to your state they're going to see that you did drive around on it cuz a look at the date and they'll penalize you the court order title bypasses all that you just go to the court you get a judgment of ownership you bring that to your DMV or dot whatever organization in your state gives titles smack it on the counter and they give you a title.

The Fallout from this is because of the fact that now um Vermont is not available more and more counties are more familiar so they're streamlining the process it's making an easier process so on our website you'll see instructions for how to do a core order title of course we have Title Service if you want some assistance with it but it's the way to go it's even better than a bonded title because on a bonded title you have to purchase a shity bond from a Bonding Agency that's going to be 1.5 times the value of the vehicle in Most states then you have to submit it to the DMV for them to approve it at the court level once you get that petition you bring it to the DMV and they accept it you want to make sure though that you get all your paperwork right because if you see even on this fact sheet from Pennsylvania it says pendot which is their version of DMV will not offer legal advice regarding a court order title so they can't help you the DMV in some respects can help you with paperwork the court cannot help you because that's considered legal advice so make sure you have all your ducks in a row all your paperwork right you know most of the counties have a a big time um checklist you know this one is I don't know 11 pages long with all their instructions and you could walk through it and do it all yourself right all the different steps but if you want help you can have that made available to you.

The good news from the Vermont loophole for titles being shut down is that now everybody is doing the court order title, which is much more powerful; it's a clean title unlike a bonded title; you don't have the word bonded stamped on your title; you're not jumping around all different states to get titles from this state and then switching it to another state worrying about insurance; you're doing it the way that is the most powerful; you're going over the head of the DMV. So after 6 months, we're seeing that, just like all things, it works out in the long run in the best for consumers and people getting titles for their vehicles.