Home » Articles » Titles » Beware of Companies Getting Replacement Titles Through Mechanics Liens
At CarTitles.com, we always use 100% researched and legal methods to get your replacement title. Companies using methods that they may or may not be aware are illegal will end up getting you into trouble. Here’s an example of why it’s important to trust our expertise and experience:
Recently, we have been made aware that the “mechanics lien” process is being offered as a solution to vehicle owners who have titling problems. While there are legitimate processes available for vehicle owners to recover titles, the mechanics lien process is not intended to obtain a title for a person in possession of a vehicle with no title.
Misuse of the process can subject the applicant to criminal and civil liability, and may subject the title to being revoked. In most jurisdictions, the “mechanics lien” process goes something like this:
A repair facility works on a vehicle for an owner.The cost for the repairs are not paid by the owner.The facility holds the vehicle for 30 to 60 days.The facility is required to send certified mail to all owners and lienholder on the vehicle.The facility is required to advertise a notice of public auction in local newspapers.The facility conducts a PUBLIC AUCTION offering the car for sale to the HIGHEST BIDDER.The facility submits official notarized paperwork with a sworn signature that all of these conditions were met.A copy of a signed repair bill is attached to the title application.The facility receives a title in the name of the auction buyer, to transfer to that person.
A prime example is this Wisconsin towing company caught using a fraudulent mechanic’s lien scheme.
In situations where a mechanic or towing company uses this process to get a title for a person who does not have legal documents, many of these conditions are not being met. First of all, there is no actual repair charges for the car since it was never in the shop for work. In addition, there is no offering to the public to bid on the car. The process bypasses the auction and it is “sold” directly to the person who already “owns” it.
Government and state DMV’s are aware that this process is ripe for abuse, and even fraud. The repair affidavits and garages and tow firms are regularly audited when they send in multiple title applications. If the paperwork is found to be fraudulent, the applicant can run into issues.
Urgent: Police departments nationwide are aware of this scam. Many people have been arrested and convicted for using “mechanics liens” to get car titles. We recommend staying FAR AWAY from this process. Do it right the first time and you’ll be able to maintain clear title to your vehicle.
States take giving away a vehicle title very seriously. A clean title is what ensures the owner of a vehicle that their possession is legal and will not be challenged later. Using a legal process to recover a missing title is the only way not to worry about liability or risk.
Find out more about converting a mechanic’s lien into a legal title.
Don’t let uncertainty hold you back. If it’s your car, you deserve a title.
"*" indicates required fields
Are you a 501(c)(3) non-profit organization looking for title assistance with donated vehicles? Learn more about how CarTitles can help prepare your transfer paperwork for no cost. Contact [email protected] for more information.