Filing a Lien vs. Declaring a Vehicle Abandoned: What’s the Best Move?
Download MP3🔹 Understanding the Difference
- A mechanic’s lien is different from an abandoned vehicle—mislabeling can cause problems.
- Declaring a vehicle abandoned can lead to it being impounded and taken away.
🔹 Example: Maryland’s Mechanic’s Lien Process
- Most states follow similar federal guidelines for mechanic’s liens and abandoned vehicles.
- Maryland is used as an example, but the process is likely similar in other states.
🔹 What is a Mechanic’s Lien?
- A repair or storage facility can place a lien if the owner fails to pay for repairs and leaves the vehicle.
- After establishing the lien, the facility can sell the vehicle to recover costs.
- The “auction” process is straightforward—you control the sale but must allow public bidding.
🔹 Requirements for Filing a Mechanic’s Lien
- Charges must be unpaid for at least 30 days.
- A repair authorization signed by the owner, detailing the work done, is required.
- Storage fees require a written contract signed by the vehicle owner.
- Abandoned vehicles do not qualify for a mechanic’s lien—avoid using that term.
🔹 Steps to Establish a Mechanic’s Lien
- Notify all required parties (vehicle owner, person who left the vehicle, lienholders, DMV) at least 10 days before the planned auction.
- Send notifications by registered mail.
- Include in the notice:
- Vehicle details (VIN, make, year).
- Breakdown of unpaid charges.
- Date and time of the auction.
- Publish a notice in a newspaper for two consecutive weeks with at least seven days between publications.
- Conduct the auction and obtain the title.
🔹 Important Considerations & Pitfalls
- Only licensed repair facilities can file a mechanic’s lien.
- You must act within the state’s time limits (typically 6-12 months).
- Filing a fake mechanic’s lien can result in title revocation and legal consequences.
🔹 Alternative Title Solutions
- If a mechanic’s lien is not an option, other methods include:
- Civil lien
- Court order title
- Bonded title
🔹 Need Help?
- Visit Cartitles.com for step-by-step guidance.
- Get assistance with filing or consult a certified title expert.
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Check out our other videos for more tips on resolving vehicle title issues!
Check out our other videos for more tips on resolving vehicle title issues!
