Title and lien question - Page 2 - Mercedes-Benz Forum

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post #11 of 13 (permalink) Old 04-30-2010, 02:10 PM Thread Starter
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Originally Posted by OAG View Post
The lien holder is not the owner they just have a lean on YOUR title (Mary Smith's in this case) the OWNER remains Mary. The lien can only be released by the lien holder (MBF in this case). If Mary paid it off (lien released by MBF) and was going to keep the car there would be no reason for her to get a new title from DMV.
I found this on another site though, talking about CA, which sounds like it applies in this case. Or am I still completely off base?
Now if you live in a paperless title state (a state with an Electronic Liens and Titles program where titles with liens are not printed, for example California) and if the lender participates in the program, and you have officially paid off your loan, the lender will then electronically release its lien through the state DMV. Then DMV will process the electronic title into a physical paper title and they will mail it to the owner of the vehicle. So in a paperless state it would then be the DMV's responsiblity to get the title to the owner. In some cases if you owe taxes or fees to the DMV for whatever reason, the DMV is likely to hold on to your title until you physically go down to DMV and try to obtain the cleared title.
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post #12 of 13 (permalink) Old 04-30-2010, 02:20 PM
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Originally Posted by dandelos View Post
The seller said that DMV Sacramento would be sending her the title, which makes sense, because DMV would have to generate a brand new title with her name on it, correct? The title in MBF's hands would have their name on it, not hers. Unless in your case DMV generated your title and then sent it to MBF first rather than directly to you, which just seems like an extra (and unnecessary) step?
That might have been the way it worked, I don't know, but you made an interesting point.

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post #13 of 13 (permalink) Old 05-11-2010, 06:21 PM Thread Starter
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Well to update everyone, the owner finally received her title (apparently it was a paper title being held out of state), and we completed the transfer over the weekend. The car is just awesome!

Thanks for everyone's inputs!
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