What is The New Loophole For Car Titles?

The Quest for a Title Loophole: Past and Present
So if you have a vehicle with no title and you’ve been getting the runaround from the DMV or whatever title agency in your state issues legal title documents you’re probably looking for what the loophole is to get a title and that’s what everybody wants is a loophole and in the past there’s been the Vermont loophole and the mechanics lean loophole and all these Loop polles have been shut down why have they been shut down well first of all because they weren’t the the proper way that the government wanted you to do it anytime you find a loophole that’s not the proper way eventually it’s going to go away right so what is the new loophole what is the loophole that you can use now well first let’s talk about the old ones the Vermont loophole that existed for you know 15 some odd years was a way that you could apply by mail to the state of Vermont to get a registration and then you get that registration then you bring it to your state and exchange for a title it’s kind of like a backdoor um secret thing that that you could do it took a lot of work you have to apply out of state get a license plate then transfer that to a title then transfer it to your state it was a long involved process plus you had to pay a lot of sales tax to the state of Vermont and then to your state so it was very expensive and took a long time but people like to do it because they like the loophole mostly because they didn’t know any other way to do it.

The Fake Mechanics Lean Loophole: A Risky Endeavor
The other method that was around for a while was the fake mechanics lean loophole where you found some local garage or repair shop that would put through a fake mechanics Lane and sign in in affidavit saying hey somebody brought this car into my shop to get fixed they didn’t pay their bill so we’re going to auction it off so we can get our money back for the bill and then they would just fake auction it to you and give you the title the problem with that is it’s illegal and the the licensing boards for the different states they know that PE that these garages are selling this service for five six 700 bucks and they’re cracking down and they’re arresting people and they’re revoking titles and for the most part it’s pretty much gone way you may be able to find somebody who’s still desperate enough to make payroll for their body shop that they’re willing to take money from you to do it but you’re at risk of the title getting revoked and that’s pretty much going away you can look up fake mechanics lean titles all over the Internet and it’ll tell you about it so what’s left.

Loopholes vs. Legitimate Methods: A Costly Comparison
Well loopholes by definition are things that are not the proper way to do it and many times the loopholes cost more money and take more time than just doing it the way that the that they offer you anything that’s legitimate to do there’s a way to do it properly you don’t have to go out of state you don’t have to jump around through hoops you know doing all kind of um remote things a lot of times people think other states are going to be easier because they know their state is hard and one of the things our sales staff hears on the phone all the time is oh my state is so hard to get a title it’s the hardest state to get a title well when you don’t have anything to compare to it seems hard every state is the same you know your state is hard but you don’t know the other states are about the same or sometimes harder many times people say oh my State’s the hardest state to get a title we know because we deal with all of 50 states that their state is actually one of the easier ones just because you can’t magically ask for a title and get it doesn’t mean that it’s going to work anywhere else

The Court Order Title Process: A Hidden Solution
So what is the loophole well it’s not really a loophole it’s a process that’s been around for decades that every state has available to get a title here’s an example from Ohio Montgomery County Ohio it says greetings if you have received this packet we have not been able to issue a title through the standard procedures auto title does that sound like you haven’t been able to get title through standard procedures what does it say next it says there is a process established to obtain a title when this happens make it a little bit bigger when the clerk of court is unable to issue a title based on the information provided the Common Pleas Court has the ability to issue a court order title that’s what it says now people hear the word court and a lot of times they say I don’t want to go to court it’s too hard here’s the thing your perception of court is watching Law and Order watching Jack McCoy in a big court case with hearings and juries and evidence and attorneys that’s not what this is this is an administrative process it’s done behind the scenes in the office it’s not done in a big courtroom case.

The Process Unveiled: Document Preparation
Now what’s the tricky part the tricky part is there are no blank forms to fill in to apply for this there are no way you can walk in and say Hey I want a court order title the County’s not going to know about it now this example from Montgomery County is an exception in Montgomery County Ohio they have just what they said right here they have a blank Petition of court order title they have it it’s one of four counties in the whole country that have blank forms what’s the form look like well here it is right here it’s fill in the blanks right my name is blank I’m in possession of this um I want to get a title right it’s a set of documents I hereby petition the court to give me a title basically what it says now there are three statement of fact that’s another form you need we’ll talk about these there are 3,611 counties in the country four of them have blank forms the other 367 counties don’t have blank forms in fact they probably even never heard about a court order title position uh petition so what do you do well you can’t walk in and say Hey how do I do a court order title they’re not allowed to help you right they have to have properly prepared documents even Montgomery County they can’t help you you either come in with these documents filled out or they can’t help you so what you can do is you can use this format and cut and paste it for your county you have to get four documents prepared you have to have this petition which is what this document is you have to have an statement of facts Affidavit of facts you have to have a DEC ation of Interest now that’s not included here in Montgomery County but you have to have a declaration of interest that basically says I’m not aware of anybody else putting a claim on this vehicle you file those with the court they’re going to do some background check on the vehicle they’re going to make sure it’s not stolen there’s going to make sure there’s no open leans on it going to make sure it’s not a salvage or parts only or junk title they’re also going to check you out a little bit to make sure you’re not like a Serial you know car thief or anything like that if everything checks out they’ll give you that Judgment of ownership and sometimes they’ll even file it for you with the DMV to get a title issue that’s why we always.

What States Are Easier To Get A Title?

The Myth of Easy State Titles
So is it better to get a title from your home state or go out of state to get a title? Many times, people who have title problems think, “Well, I’m going to go; what’s the easiest state to get a title from?” It’s a question we get all the time from our sales staff.

No Easy Way Out
In reality, there are no easy states. All the states are the same in terms of what their title requirements are because the title requirements come from the federal government. They’re executed by the state, but the federal government states what the requirements are. The only reason you think your state is hard is because that’s the only state you’ve really dealt with. All states are going to be about the same.

Risks of Going Out of State
Going out of state to get a title is going to be a big red flag because if you try to switch it back to your state, just like happened with that whole Vermont fiasco back a few years ago, states are scrutinizing and auditing these out-of-state flipping it around processes because they know you’re trying to avoid something in your state, either inspections, sales tax, or proper documentation.

More Trouble Than It’s Worth
And by the time you’re all done, you probably end up spending more money and more time doing out-of-state activities anyway. Sometimes it feels good to kind of feel like you’re getting over the man in your state, but in the long run, it’ll take you more time, more money, more aggravation, and more runaround than just going through your state.

Stick to Your State’s Process
Your state has a process to solve your problem, guaranteed. You just have to be diligent about it. If you’re always looking for some kind of backdoor loophole, you’ll end up spending more time, money, and effort than you did in the first place.

Red flags and investigations
Plus, it is going to raise a red flag because when your state sees you with a title you just got in the last few months in another state and now you’re trying to switch it back to your state, they’re going to wonder why you did that, and they’re going to open up an internal investigation and see if you avoided inspection, avoided sales tax, or avoided any other type of requirement for that vehicle, and if you did, that could create more problems than it’s worth.

Lessons from Vermont
And a lot of times these out-of-state processes are flagged even by that state because they want to know if somebody is trying to do something. That’s what happened with Vermont. The Vermont process was being used for nefarious purposes, and a lot of those titles got revoked. A lot of those people got into trouble.

Conclusion: Stick to Your State
So be aware that your state probably has something; no state’s going to be any easier than yours, and if it is easier, it’s only easier because you’ll be evading something that you’re supposed to do in your state. So if you want more information on how to get a title easily in your state, just click the link below at cartitles.com. We have all the instructions you need to easily get a title in your state. We have title service if you want us to do it for you. We also have title consulting. If you want to speak live one-on-one with undivided attention from a certified title agent, you can do that as well at the website cartitles.com.

Get A Lien Release For A Lender That is Out Of Business Lienholder

Problem with Lean Holder
So what happens if you have a vehicle that has a lean on it and your lean holder, the bank or the lender, whoever it is, is now out of business? Let’s say you bought the car five or six years ago, you paid off the loan, or maybe you didn’t pay it off, and now the lean holder is nowhere to be found; they’re out of business.

Easier Lean Release
Well, the good news is that sometimes it makes it easier to get a lean release, to get your title released to you, to get your title duplicated to you. It’s a very specific process for sending out documents to that lean holder.

Registered Agent
Now, the lean holder may not be in existence, but they do have a registered agent. A registered agent is an official recipient of all documentation, all correspondence for a company, and if that company is no longer in business, you can send it to them. If they are not able to sign your lean release or your letter of non-interest, you can now take that to your local County Magistrate with the right forms.

Follow Specific Instructions
It’s not just like you can walk in the door and have somebody else sign on your behalf. So, the lean holder is out of business; you have to go through a very specific set of instructions. Our website, cartitles.com, has those instructions. We also have title consulting if you’d like to have some more direct one-on-one assistance with that.

Don’t Despair
But the most important thing is, don’t despair if your lean holder is out of business. It doesn’t automatically make the lean go away; you still have to jump through a few hoops. The good news is, if the lean holder is not in business, they can’t object to it. They have to let it happen, but you do have to make some certain efforts.

Paperwork and Process
The paperwork has to be done right. You have to send it to the right place with the right wording on it, and if it doesn’t come back, that’s not the end of the story. You still need to get somebody else to sign off proving that this happened, but it’ll be very easy to do because they will see that the lean holder is not objecting to it. You’re in the right; you should get a title, and it’ll clear itself out.

More Information
Again, more information on our website, cartitles.com. It’ll give you all the instructions specific on how to do it with every lean holder like Santander or Chrysler, and you’ll get your title.

Kentucky Red Titles: What Is It?

What is a Kentucky Red Title?
All right, so what is a Kentucky red title? A lot of people are inquiring about this. They got some piece of paper that says title on it from the state of Kentucky, and they’re thinking I’m good to go. These are not real titles. These are parts-only junk vehicles that, of all the 50 states, one state has ignored the federal guidelines on not allowing these vehicles on the road and given a piece of paper for their state only. In fact, even in their state, it doesn’t work in every County.

Tennessee’s Stance on Kentucky Red Titles
Here’s a web page from the state of Tennessee, which is right next door, talking about Kentucky red titles. Kentucky red titles are the equivalent of a non-reparable certificate. Vehicles that are issued Kentucky red titles are damaged beyond repair and would not meet safety standards. Now you might say, hey, this car is not damaged, doesn’t have anything wrong with it. Well, it might have been repaired, or it might have been a flood car, or it might have been a recovered theft. Either way, the insurance company said don’t go back on the road.

Registration Issues and Legal Implications
A vehicle that has been issued a Kentucky red title may not be registered in Tennessee or any other state for that matter, and many of them can’t even be registered in Kentucky anymore. So if you’re getting a vehicle with a Kentucky red title, look at it as you would any other type of junk parts-only non-reparable certificate of destruction vehicle. It’s not going to fly. The federal law says that states are not allowed to put them on the road. The insurance company that paid the claim put it into the National Motor Vehicle Title Information System (NMVTIS) and blocked it in all 50 states. It cannot be undone.

Advice for Kentucky Red Title Holders
So it’s not the same as a regular title. You can’t switch it to a rebuilt, you can’t switch it to a salvage, you can’t undo it. It’s permanent. So either don’t buy it, or if you did already buy it, look for your best way out of that trap that you’re in.

Title Consulting Services
We also have title consulting. If you click the link below, we can talk about a specific vehicle and also look it up to make sure that it really is a junk vehicle or parts-only before you take drastic action.

DON’T File For An Abandoned Vehicle Title

So you have a vehicle that you’ve purchased or maybe was given to you and somehow you have a title problem. You can’t get a title, so how do you solve that problem? Well, many times the person will just think, I’ll just file for an abandoned vehicle, thinking that an abandoned vehicle is Finders Keepers—you get to have a title. It’s not how it works. We’re going to take a look at abandoned vehicles, discarded vehicles, what the law says, what you can do and what you can’t do, and possibly what are solutions for you to get a title when you have a vehicle that doesn’t have the right paperwork.

Misconceptions about Abandoned Vehicles
First of all, let’s clear up a common misconception: an abandoned vehicle is not something that anybody can just claim. If you see a car and you want to claim it, you can’t just say, well, it’s abandoned, I get to keep it. Like I said, Finders Keepers does not apply to abandoned vehicles. The laws in every state have very specific chapters and statutes for what they call discarded vehicles, what you can do, and what you can’t do.

Definition of Abandoned Vehicle
First of all, let’s take a look at what they say is an abandoned vehicle. This is the definition. Now, this is from the state of Oregon, but many states have the same rules because it comes from federal statutes. Abandoned vehicle definition means any vehicle that has been deserted or relinquished without a claim of ownership. Without a claim of ownership—that’s important because if you want to become the owner, you have to have a claim of ownership. If you claim ownership, now it’s not abandoned. If you say that it’s abandoned, you’re also saying you don’t have a claim of ownership. So it’s like a catch-22, right? So whatever you do, don’t file or define something as abandoned if you don’t want to have a claim of ownership because you’re going to waive your rights.

Additional Conditions for Abandoned Vehicles
In addition to that, it has one or more of the following conditions: has expired registration, appears to be inoperative or disabled, and appears to be wrecked, dismantled, or junked. So abandoned doesn’t just mean that no one’s claiming ownership; it has to be in a physical condition that’s also low.

Investigation Process for Abandoned Vehicles
So what happens if somebody says something is abandoned? Well, they have to do an investigation. The duty of the police department whenever a vehicle is considered abandoned is to make an investigation to discover the owner of the vehicle and contact that person. Written notice or certified mail—the police do this, not you. If the owner of the vehicle is not found, place a notice on the vehicle where it can be easily seen. The notice says it’s in violation of this chapter and within 5 days it must be removed. If it’s not, then what happens? Then it gets towed. It gets towed by a licensed towing company designated by the police department. It has to be a licensed official towing company. They just can’t go roving around and say, hey, I want to tow that vehicle. It has to be tasked and it has to be dispatched by the police department, can be towed upon the order of a city officer or employee, taken to a storage area designated by the city. That doesn’t mean your backyard; it has to be designated by the city.

Disposition of the Vehicle
Then what they can do, after they rack up storage fees and send out notices, is they can auction the car off. Disposition of the vehicle: the towing company can sell or dispose of the vehicle. The towing company can send written notice. So a lot of people think, well, I’ll just do that. I’ll send out a certified letter, if I don’t hear back, I get to keep the car. It’s not how it works. Abandoned vehicles are not Finders Keepers. Remember that.

Common Queries about Abandoned Vehicles
Now, there may be a few jurisdictions, some cities and counties, that have other ways of doing this, but even if they do, it’s not the best way to go. More than likely, the first question we ask when somebody calls up and says, hey, I have an abandoned vehicle, is our sales staff will ask, what did it just show up on your lot and somebody just brought it there? You don’t know where it came from? No, I bought it on eBay—that’s not abandoned. Oh, no, some guy gave it to me in exchange for, you know, cleaning out his gutters—that’s not abandoned. It was given to you, and that’s a good thing. If it was abandoned, remember what abandon means.

Clarification on Ownership
First section: definition of abandon means abandoned vehicle means any vehicle relinquished claim of ownership. You don’t want to relinquish claim of ownership if you want a title. So if somebody gave it to you, they sold it to you, you bought it off Craigslist, you bought it from a barn—it’s not abandoned. You own it. You just have to get a title, right? You have to get one of these, a document. The way to do it is not through the abandoned process.

Bonded Title Solution
So that’s the bad news. How do you do it? Well, if you’re in a bonded title state, get a surety bond, attach it to an application, file it with the state, get a bonded title. Easy to do. Most surety bonds are going to cost you $100. Don’t get rattled by reading something where you have to pay two times the value of the vehicle—that’s just what the bond value is set at, but the bond itself will cost you $100. Check it out at probonds.com, pbsrbonds.com. Put in the value of the vehicle, hit enter, it’ll tell you the price—it’ll probably be 100 bucks for most vehicles if it’s worth 10,000 or less.

Court Order Title Solution
What else can you do? You can also do a court order title. You file a petition in the county court where you live. The judge will check out the vehicle, make sure it’s not stolen, make sure there’s no liens on it, they’ll give you a judgment of ownership. You bring that to the DMV, slap it on the counter, and they give you a title. It’s not like a big Law and Order Jack McCoy court case. It’s an administrative proceeding; it’s easier than dealing with the DMV, in fact.

Warning Against Other Methods
So forget about abandoned, forget about filing a lien against a vehicle, because unless you have a signed authorization to do work on a vehicle and you have a licensed repair shop, you can’t file a lien. And even if you do have a licensed repair shop, they know that mechanic’s liens are scams. Most people that file mechanic’s liens are not really a repair shop that had authorization from the owner, so they’re going to audit it, and if they find anything wrong, they’ll kick that out.

Conclusion
So abandoned vehicles—don’t go there. It’s not going to work out for you. It’s the worst way to get a title. Even if you do have some narrow loophole in your county or your city, it’s the worst way to get a title. It’s going to take the longest; it has the most opportunity for the government to come snatch that car away from you because you have to say there’s no claim on it. And if that person has back taxes, now the city will claim it. If they didn’t pay their registration, the city will claim it. You don’t want to do abandoned vehicle, believe me. You want to look at one of the other bonded title or court order title methods. It’ll work out way better for you.