A title lien on a junk car is worth exactly as much as the junk car. I'm really surprised that the scrapyard took the vehicle. They're supposed to do title searches beforehand. However, for you, the bottom line is that you still owe the money and you haven't stolen anything. Just keep paying on schedule and you'll be just fine. One day, you'll even get a title release form in the mail from the lender. You can frame it as a memento or just stuff it in a drawer. Good luck.
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No, you have not "stolen" the car, you have sold it. I am also surprised the scrapyard took it without a title, which presumably the loan company currently has in their possession. The lien is now worthless as is the title, but your credit is of value. Keep paying if you can. In fact, pay the balance if you can to clear the issue and avoid interest. Title loans are among the highest of interest rates.
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