How To File Abandoned/ Mechanics Lien Titles

Filing for an Abandoned Vehicle Title
So, filing for an abandoned vehicle title is a very specific process in order to get reimbursement for a vehicle that maybe has been left at your shop, towed in, or stored. Now, I use the phrase “abandoned vehicle” when I started this—be very careful in that. If you have a vehicle that has been brought to a repair shop, brought in for storage, or towed in, you don’t want to use the word “abandon.” I use that word initially because most people think of it as an abandoned vehicle. In fact, we get hundreds of calls every day from shop owners that say, “I want to get a title for an abandoned vehicle.”

The Importance of Correct Terminology
You need to get rid of that terminology. If you call a vehicle abandoned, you probably will never get a title. But that’s okay because that’s not what it is. It is a mechanic’s lien, a towing lien, or a storage lien. If you call it abandoned, you probably have to give the car away. You can get more information about the difference between an abandoned vehicle and a mechanic’s lien on our website below. But if you do have a vehicle that was brought to you for repairs, towing, or storage, there is a process to get a title. However, it is not abandoned—abandonment is different, and we’re going to talk about that mechanic’s lien process.

Mechanics Lien Process Example
Here’s an example from the state of Florida. This is the Florida Statutes talking about personal property liens, generally Section 7113. It talks about what the steps are that are involved, and most states have about the same steps. You have to follow them to the letter; otherwise, they will reject the application. We do hundreds of these every week, and what we find is that it works very well as long as you follow their program. If you deviate from any of the steps, they will kick it back.

Why the DMV Scrutinizes These Applications
Why do they do that? Well, the DMV or the titling authority in every state knows that many times, this process of a mechanic’s lien is used improperly by people and companies, like body shops, to get titles for vehicles that really shouldn’t be getting titles—vehicles that weren’t legitimately brought into their shop for service, but rather belong to a buddy who bought a car on Craigslist or someone they found on Facebook. So, they audit these and scrutinize them to make sure everything is right. It’s very, very important to do all this paperwork correctly.

Steps to Establish Prior State Registration
Let’s look at a few examples and specific instructions you can get on our website. We also have a service if you want us to do this process and the paperwork for you. If you look at Section 713, the first step is a good faith effort to establish the prior state registration. Before you do anything else, you have to make a good faith effort. What does that mean? A check of the database for the owner or lienholder, a check of the National Motor Vehicle Title Information System, a check of the tag, and a check with law enforcement. The National Motor Vehicle Title Information System is a federal system.

Storage Fees and Reasonable Charges
Number two is that you can charge fees for storage, but they must be either reasonable, published, or agreed upon. You can’t just make up a storage fee and say, “I’m charging you $100 a day.” It has to be set forth as a reasonable fee. If you try to get more than that, they might reject your whole package.

Importance of Proper Notices
The other very important part is the notices. A person claiming a lien for towing, recovery, or storage must give notice by certified mail, pursuant to subsection SE 16, to the registered owner, the insurance company, and all persons claiming a lien as disclosed by the records in the highway safety and motor vehicles system. What does that mean? It means you have to send these notices to the addresses listed in the title record.

Official Records and Title Freezing
You can’t just use any random address you found in the glove compartment or one that the customer gave you. You have to get the records from the government. In some states, it’s required that before you send out notices or certified letters, you first submit a notice of lien to the Department of Motor Vehicles. If you do that, they will first freeze the title, so the owner or lienholder can’t change it. This prevents any funny business. Then, they will give you a printout of what they have for a title record.

Sending Notices to the Right Address
Now you have the official record of the name and address of that person. You might say, “Well, I know they moved from there.” It doesn’t matter. You send it to the address that’s in the title record. If it gets sent back, at least you sent it to the correct address. If you send it to a different address than what’s in the records, the whole thing could get rejected two months later when you apply for the title.

Required Information in the Notice
What must be in the notice for a lien on a vehicle? It must include the VIN number, the name and address of the lienor (your facility, body shop, repair shop, or towing company), and the name as registered with the Department of Corporations. Many people make mistakes here. If your business is called “Automotive Restoration Development LLC,” but you call yourself “Bill’s Body Shop,” you must put your official company name on the notice.

Avoiding Rejected Claims
If you use “Bill’s Body Shop” or an abbreviation, the state may reject it, or the person being claimed against could dispute it. That name and address must also appear on the outside of the envelope sent to the owner. Why? Because some body shops send blank envelopes, hoping the recipient thinks it’s junk mail and throws it away.

Itemized Charges and Sale Timeline
You must include an itemized statement of charges—not just “You owe $4,200,” but a breakdown of storage, repairs, towing, parts, etc. You must also notify them that the vehicle may be sold after 35 days for an older model or 57 days for a newer model. If you don’t wait the proper time, you will lose your title. The address where the vehicle is physically located must also be included.

Timeline for Notices and Potential Legal Consequences
Timing is important. You can’t send that notice less than 30 days before the sale of the vehicle (or 52 days for a newer model). You must give the owner at least a month or two to redeem the payment. If the DMV sees the dates are wrong, they will reject the application. Also, if you make a mistake in the paperwork and the lienholder, insurance company, or owner suffers damages, they can sue you and win money.

Importance of Following Procedures
There are many other details to follow. For example, you must do this notice at least 20 days before the sale, pay 5% of the proceeds to the clerk, and follow all statutory requirements. This is an eight- or nine-page statute, and you must comply with all of it to avoid losing the vehicle.

State Regulations and Federal Law
This is just one example from Florida, but most states have similar procedures. The origin of these procedures comes from federal law, so whether you’re in Florida, Pennsylvania, or Arizona, the steps are largely the same.

Final Takeaways
If you are a towing company, repair shop, or body shop with a vehicle, first of all, don’t call it abandoned—it probably isn’t. “Abandoned” means it showed up out of nowhere, and you have no idea who brought it there. Instead, it’s a mechanic’s lien or a towing lien. Secondly, don’t talk to lienholders or owners verbally until you know exactly what notices to send. Many lienholders know how to work the system, and if they catch you making a mistake, they can invalidate your entire lien and take the car.

Importance of Doing It Right
It used to be easier to get these titles, and you may have known a local “title guy” who handled mechanics liens for cheap. However, those days are over. The state no longer plays around—you can’t skip steps or cut corners. If you don’t do it right, you will not get your title and will lose out on your money.

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