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Is a auto lien valid if the loan is transferred or sold?

Greensboro, NC |

I brought a car from lets say Cadillac. It was financed by GM. I defaulted on the loan and it was charged off by GM and then transferred or sold to Cadillac. GM no longer has the loan. The lien for the car is in the name of GM. The lien was never transferred or refiled by Cadillac. Is the lien valid? Several years have gone by and I have not been sued. This stalemate just persist. I have a car that DMV won't remove the lien unless they get a lien release from GM and GM won't talk to me or negotiate because they no longer have the loan. Don't know what to do to resolve this.

Attorney Answers 1

Posted

GM/Cadillac is the same thing. Cadillac is just a brand made by GM the same way Chevrolet, Corvette and GMC is made by GM.

My question is what happened to the car? Are you saying that you defaulted, but GM does not want to repo the car? Yes the lien is still valid. If you want to get a lien release you have to go through Cadillac if they are now the lienholder.

There are other ways to satisfy a lien but Cadillac is still in business so there is no other way to get the lien release than for you to make some kind of agreement to get the car loan paid off.

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5 comments

Asker

Posted

I still have the car. This issue is over 4 years old so there has just been this stalemate where nothing has been accomplished to help either party.

Rachel Lea Hunter

Rachel Lea Hunter

Posted

I have another client in kind of the same boat - GM does not want to repo but they will not release the title either. If its been 4 years and no repo and no lawsuits, drive the car until the wheels fall off and the car can be sold to a junkyard. Or there has to be someone at Cadillac who will release the lien IF you pay some amount of money. Whether that is 10% or 100% I don't know. I would shoot for 50% (if you have it) and see what they say. Just get a settlement letter in writing before you pay them a dime and make sure that once you pay any settlement funds, that they will release the lien and send you the title.

Asker

Posted

I have sent them letters to try to settle but never get a responce.

Rachel Lea Hunter

Rachel Lea Hunter

Posted

Well, you have to call. Persistence pays off. You need to see who you need to talk to. There are no guarantees that this will work either - GM is huge, but there has to be a legal department. Maybe they will pay more attention to a letter from a lawyer but it has to be sent to the right person. Otherwise you are spinning your wheels.

Rachel Lea Hunter

Rachel Lea Hunter

Posted

From the DMV Manual: 6.9 REMOVAL OF LIEN G.S. 20-58-58.8, 85 (MVR-8) A lien is normally released when a sale occurs and the lien is properly released. Registered owners may have their lien removed with the following: 1. MVR-8 completed by the registered owner 2. Lien marked paid on the title or separate valid lien release 3. Fee of $15.00 The title will be issued clear of lien and mailed to the registered owner. A second lien may be removed without removal of the first lien. The release of the first lien automatically makes the second lien first. ***When a title comes back unclaimed, there is no additional fee required for an unclaimed title when a better address is furnished. An unclaimed title request with a lien release furnished, requesting title and removal of lien, requires a $15.00 fee. The lien release properly completed is adequate. An MVR-8 is not required in addition to the lien release. The following procedure should be followed to allow a lienholder to remove a lien when the lien is satisfied and the owner cannot be located: 1. Obtain MVR-8, affidavit for removal of lien signed by the lending institution 2. Obtain affidavit from lienholder that owner cannot be located 3. Obtain North Carolina title with lien marked “Paid” and lien release signed by the lienholder’s representative 4. Collect $15.00 fee for lien removal 5. Assign new title number and have title generated clear of lien The following procedure should be followed to allow an owner to remove a lien when the lien is satisfied and the lienholder cannot be located: 1. If it is impossible to obtain a lien release, the owner may furnish any evidence showing the lien is satisfied. A signed notarized statement is required from the owner explaining why they are unable to furnish a lien release. Division will then send the lienholder a registered letter at last known address. If the title is for a mobile home, a court order instructing the Division of Motor Vehicles to release the lien must be surrendered before the lien will be released. 2. A lien with a corporate lienholder that has dissolved, ceased to do business or out of business for more than 3 years is considered null and void. SECTION 1 MODIFYING TITLE DOCUMENTS Chapter 6 – Page 7 3. An original lien contract, chattel mortgage, deed of trust, etc. is acceptable if stamped “paid” or “lien able if stamped “paid” or “lien satisfied” showing lienholder’s name. A countersignature is not required. The problem here is the lienholder still exists (has not gone out of business) and the lien has not been paid. Again your options are to either work out a voluntary settlement, pay off the lien in full (either way you need to contact them), or not pay and drive the car till the wheels fall off.

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