Lost Vehicle Title Lien Mitigation

So if you have a lost car title and you need to do lien mitigation what is the process for doing that well lien mitigation means that there’s an open loan on the vehicle not that just there’s a lien recorded on title but there’s actually a loan money owed on that car.

Identifying Non-Performing Loans
The loan balance balance exists with the lender meaning that they’re looking to collect money it’s usually a non-performing loan meaning that the payments have not been paid for some period of time.

Potential Scenarios
For example if you purchase a vehicle from somebody and you’ve discovered there’s a loan on it that person probably wasn’t paying their payments up until the day they sold it to you that’s probably why they sold it because they weren’t paying their payments it may even be out for repo if that’s the case then that lender is going to be looking to have that account closed before they release the title.

Lien Mitigation Process
Now if you are not the borrower on that loan or not related to the borrower they will likely do lien mitigation meaning that they’ll settle the amount for lower than face value because they can still collect that money from the actual borrower they just won’t have the vehicle as collateral so contacting them to do lien mitigation is a touchy thing you got to make sure you’re not a related party it’s an arm’s length transaction and understanding what the current status of that loan is will go a long way and figuring out how to get that loan down to a lower amount just the nominal value maybe a hundred or two to get that lien release in most cases the lender doesn’t want the car back they’re not in the car buying and selling business they’re in the lending business so getting the car back and then reselling it is going to be more trouble than it’s worth they just want to make sure that the borrowers aren’t getting away with getting a free car so showing that the documentation demonstrates is an arm’s length transaction goes a long way in doing lien mitigation.

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