Recently, another example of a massive auto title fraud scheme was brought to light, this time out of Pennsylvania. According to this article, the Pennsylvania Attorney General busted a massive auto title fraud scheme that included 21 businesses, 5 residents, and about 30 people. So what happened?
According to the article, allegedly they were forging documents and using improper methods to get titles for vehicles that should not have been titled at all. Some of the vehicles were stolen, some had active liens, some had prior owners that were objecting, and some were actually salvage vehicles that had the VIN swapped to hide the salvage brand. All of this is considered to be title washing. The article mentions that hundreds, if not thousands of titles were issued and many of them will be revoked.
The moral of the story is that if you’re looking to get a new title, don’t use a sketchy or illegitimate process to get one. Specifically, be cautious about using the services of a title company that says they can get you an actual title certificate. Many title companies will say, “Give us $600 and we’ll get you a title, no questions asked, don’t worry about it”, and if you’re looking for relief from a complex situation, this may sound great, when in reality it will probably cause you more trouble down the road. The problem with this quick fix is that oftentimes these companies do not disclose the process used to get your title. This means, that they could be using one of the fraudulent methods from above, like the case in Pennsylvania. Even if you were part of this unknowingly, you’re still going to be on the hook for it because the title will be in your name. You may have not gotten your hands dirty, but you’ll be the one who has to answer for it as the vehicle’s owner.
If you’re looking for help with a complex title situation, hiring a title company may be beneficial, but it’s crucial for you to thoroughly understand the process before agreeing. Make sure to read over any documents that the title company has you sign to avoid agreeing to something that you’re not comfortable with or sure about. The paperwork has your name on it, and if the title company uses a fraudulent practice, you don’t want to be left holding the bag while they make off with your money.
Title documents are very serious government documents that are heavily scrutinized by state DMV agencies and the DOJ. Remember that when you are applying for a vehicle title, you are swearing under the penalty of perjury that it is being done correctly. If it’s done incorrectly, it could get you into a lot of trouble or you could lose your vehicle.
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
As we head into 2023, supply chain issues continue to affect the automotive business, but in a new way. Here’s an article from the Wall Street Journal talking about a shortage of title paper for car titles. You may think, why not just print a car title with a laser printer on standard paper? However, it’s not that easy.
Car titles are printed on security documents, similar to money or other documents like checks and birth certificates. This special paper has hidden security features like watermarks, woven threads, and specific color patterns to avoid duplication and forgery. Because this type of paper is so secure and specific, car title printing is backlogged until the security paper becomes available. Some states are having drivers wait months for their titles to be printed.
In the meantime, newer vehicles often have electric titles rather than paper titles. However, if you don’t have a newer model vehicle, you’ll run into problems if the vehicle is being transferred to another state, going to a lienholder, or if you’re planning to sell it or trade it in.
Backlogs created by supply chain issues aren’t just for the parts, these backlogs also impact things that are invisible to most buyers. Title documents are key to owning a vehicle. If the DMV has problems printing these documents, drivers will have to wait to get the right paperwork or to get their lien released from their vehicle.
In the realm of auto financing, borrowers are encountering a shift in the strategies employed by lenders when it comes to recovering defaulted automotive loans. As a primary borrower facing the challenges of a defaulted loan, it’s crucial to stay informed about the evolving landscape, as some lenders are intensifying their recovery tactics to recoup their losses.
A notable example in this trend is Wells Fargo Automotive, which has taken a unique approach to address the shortage of repo personnel. In an effort to expedite the recovery of their vehicles, Wells Fargo Automotive is offering a significant incentive to repo agencies. This incentive takes the form of a $500 reward per vehicle prioritized for repossession. This move is indicative of the urgency felt by lenders to retrieve their assets efficiently.
For borrowers with vehicles carrying a lien that is currently in default, this development could present a unique opportunity for negotiation. The key insight here is that lenders, faced with challenges in repossession logistics and the associated costs, may be more willing to explore alternative resolutions. Instead of pursuing the cumbersome process of repossession, which involves substantial expenditures on repo personnel, transportation, and auction fees, lenders might find it advantageous to negotiate with borrowers directly.
The primary objective for lenders is to recover their financial stake, not necessarily the physical possession of the vehicle. As a borrower, you could leverage this dynamic to your advantage during negotiations. Lenders may be open to negotiating a lien release in exchange for a mutually agreed-upon amount, avoiding the complexities and costs associated with vehicle repossession.
If you find yourself in the position of negotiating with a lender over a defaulted automotive loan, consider the following steps:
As the landscape of auto loan defaults undergoes changes, borrowers should be proactive in navigating these shifts. Recognizing the evolving strategies of lenders and leveraging this knowledge during negotiations can potentially lead to more favorable outcomes for both parties involved.
Stay informed, communicate openly with your lender, and explore feasible alternatives to repossession. In a dynamic financial landscape, being adaptable and strategic in negotiations can make a significant difference in finding resolutions that work for all parties.
It has been a couple of months since Hurricane Ian and several other tropical storms unleashed their fury upon Florida. In the aftermath, we are witnessing a surge in inquiries, with hundreds of potential customers reaching out. These individuals share a common concern – the vehicles they’ve purchased carry a prior claim for damage from the hurricane, often resulting in what’s ominously referred to as a “Certificate of Destruction.” While Florida adopts this term, each state has its own nomenclature – non-repairable, junk, or Parts Only.
A recent incident underscored the prevalence of this issue. A caller had acquired 14 vehicles from an auction, only to discover that each one came with a Certificate of Destruction. This revelation raises critical questions: What does this designation mean? What actions can be taken with these vehicles, and what are the stipulated requirements and restrictions?
Despite its appearance, a Certificate of Destruction is not a title. It is a formal document issued by a government agency signifying that the vehicle is no longer eligible for road use. In Florida, the authority for such designation is rooted in the state statutes, and the process is treated with utmost seriousness. Violating the regulations surrounding these certificates can lead to severe consequences, including potential third-degree felonies.
In the Florida Statutes, specific conditions must be met for the Department to declare a vehicle unrebuildable. Upon meeting these conditions, a Certificate of Destruction is issued, exclusively authorizing the dismantling or destruction of the vehicle. Notably, any unauthorized activities pertaining to these certificates are deemed serious offenses, carrying the weight of a third-degree felony.
One of the critical aspects of the Certificate of Destruction is that it voids traditional processes associated with obtaining a vehicle title. Once this certificate has been obtained for a vehicle, none of the conventional methods or rules for acquiring a title are applicable. This distinction is pivotal and emphasizes the finality of the unrebuildable status conferred upon the vehicle.
The primary reason for seeking a Certificate of Destruction is rooted in insurance claims. If an insurance company, having paid a claim, harbors reservations about the vehicle’s roadworthiness, they may opt for this designation. The rationale is clear – even if a seemingly well-repaired vehicle encounters issues later, such as corrosion-related brake line failures or airbag malfunctions, the liability falls back on the insurance company. To preemptively mitigate these risks, insurers opt for the irreparable status of a Certificate of Destruction.
In the marketplace, these flood-damaged vehicles often end up at auctions like Copart and IAA. Despite appearances, where the vehicles might seem in good condition, a Certificate of Destruction renders them ineligible for title or registration in any state. This ineligibility is a shared status across different states, making circumvention challenging.
As the marketplace is flooded with these vehicles, buyers need to exercise extreme caution. A flood-damaged vehicle may appear outwardly intact, but the Certificate of Destruction designation is a red flag. It signifies that the vehicle is no longer eligible for title or registration in any state, making it a risky investment.
In the aftermath of natural disasters, navigating the complexities of post-disaster vehicle transactions becomes crucial. For those grappling with vehicles labeled with a Certificate of Destruction, understanding the gravity of the situation is paramount. We urge potential buyers to explore our website for comprehensive information on this matter. Thousands of these unrebuildable cars are already flooding the market, and it’s imperative to tread carefully to avoid getting stuck with a vehicle carrying this irreversible designation.
For detailed insights and guidance on handling vehicles with a Certificate of Destruction, visit our website. Stay informed, stay vigilant, and safeguard your investments amidst the challenges posed by post-disaster vehicle transactions.
If you own a vehicle with a salvage title, you may be wondering what the process of repairing and inspecting it involves. It’s important to also consider insurance implications when dealing with a repaired salvage vehicle. After repair, the vehicle will be issued a rebuilt title. In this article, we’ll go over the details of the inspection process for a salvage vehicle, and how obtaining a rebuilt title can affect insurance coverage and the vehicle’s resale value.
Before you take your repaired salvage vehicle for the official state inspection, it is a good idea to have it checked by a private mechanic. This pre-inspection will help ensure that the vehicle is properly repaired and ready to pass the official inspection. If your vehicle does not pass the salvage inspection by the state, you may be required to undergo a more thorough inspection before being granted a passing status. Additionally, applicants often have to wait 30-60 days for a second inspection. To avoid this, it’s important to ensure that all repairs identified in the salvage claim have been completed to the required standard set by the state.
Every state has its own salvage inspection process. Before going to your salvage inspection, it’s a good idea to familiarize yourself with the state requirements for salvage to rebuilt titles. A major aspect of all salvage inspections is the ability to produce receipts for all parts repaired. For example, if the salvage claim required you to fix the fender, you’ll need to provide a receipt for this part to show where it came from and to prove it came from an approved vehicle. The inspector will cross-reference the newly replaced parts with their insurance database to confirm the repairs were made accurately and using approved parts. Repairs that are not visible may indicate prior flood damage, or a recovered theft, which will make the inspection more complicated. Once you’ve passed the inspection, the DMV will issue you a rebuilt title.
Even though the car is running properly and safe to operate, some insurance companies will not insure vehicles that have rebuilt titles. And if they do, the coverage is very minimal and limited. If you’re looking to insure a vehicle with a rebuilt title, you may have to pay a higher rate or settle for less liability coverage. So if the vehicle is subsequently damaged, it may be challenging to recover any repairs.
This insurance consideration alone hurts the resale value of rebuilt vehicles, but additionally, many lenders will not finance a vehicle with a prior salvage history or rebuilt title. So if you have a later-model vehicle with a rebuilt title that you’re looking to sell, the new buyer may have severe limitations on financial assistance.
In summary, it is possible to convert a salvage title to a rebuilt title, but there are some limitations to consider. To ensure a smooth process, it is important to understand the original salvage claim, the inspection requirements in your state, any insurance restrictions, and any limitations on reselling the vehicle. While not all salvage vehicles will be eligible for a rebuilt title, familiarizing yourself with the process can help you navigate it more effectively.
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