Untangling Zombie Car Title Liens: Resurrecting Old Records
Download MP3This episode delves into the issue of zombie liens on car titles, drawing parallels with similar situations in real estate.
Key Points:
Zombie Liens Explained:
- Definition: Liens that were believed to be resolved or forgotten but resurface unexpectedly.
- Impact: Blocking title transfers, causing issues with DMV.
- Scenario: Homeowners receiving surprise debt collection letters for long-forgotten second mortgages.
- Similarities with car title liens: Both can block title transfers.
- DMV's Role: Acts as the letter, preventing title transfer due to outstanding liens.
Borrowers' Assumptions:
- Belief that debts were modified, discharged, or forgiven.
- Sudden reappearance of liens due to debt collectors purchasing old debts.
Steps to Resolve Zombie Liens:
- First Action: Send a lien release package to the original lien holder.
- Importance of original lender's sign-off for DMV acceptance.
- Legal Advice Disclaimer: Not providing legal advice.
- Collection agencies can't sign off on lien releases.
- Legal complexities: Courts' differing views on lien retention after debt charge-off or sale.
Proper Procedure:
- Use physical paper documents for lien release requests.
- Avoid ineffective methods: phone calls and emails.
- Alternative: File with County Magistrate if the original lender is unresponsive or out of business.
Common Problems:
- Blocking vehicle owners from selling their cars, renewing registrations, or moving to another state.
- Urgency of resolving zombie liens to prevent further issues.
Additional Resources:
- Visit cartitles.com or lienrelease.com for detailed instructions.
- Title services available for assistance.
Expert Consultations:
- Access to licensed private investigators, insurance brokers, real estate title examiners, civil court mediators, and general contractors for personalized advice.
- Visit actualhuman.com for one-on-one consultations.
