Home » Articles » Titles » Top 3 Ways To Solve Tough Car Title Problems
It is now 2023, and our company has been providing car title services for almost 20 years. We offer title services to dealerships, auctions, lien holders, and consumers. Frequently, we are asked what the best course of action is for obtaining a title in a difficult and complex situation.
If the title process is straightforward, a bonded title may be sufficient. Alternatively, some people opt for the Vermont loophole, which we do not recommend. Another option is to obtain a duplicate title. However, what is the best solution if you are facing a challenging title problem? This question often arises from dealerships that have taken a trade-in with title complications or from consumers with unpaid liens on their vehicle or title records.
Fortunately, there are three methods that can be used to solve even the most difficult title problems. Let’s take a closer look at each of these methods.
As you learn about these methods, you may find some aspects you don’t like. That’s understandable, but if you don’t solve your title problem, you won’t be able to obtain a title. Titles are legal government documents that can only be issued by a government agency. You cannot purchase one from a company or download one online. The government will not give you a title simply because you request one or have a bill of sale. If there is an issue with your title, you must resolve it before the government can issue you a new one. The DMV or Department of Transportation in your state is responsible for issuing titles, but they can’t provide you with one based solely on your request. You must provide proper documentation, and your request will be denied if you don’t have it. The following methods can help you resolve title problems.
The first method we recommend for resolving title problems is to obtain the signature of the prior owner or lien holder. If you have a block on your title due to a previous owner or lien holder appearing in the system, you must have them sign a single form, and you’re good to go. However, it’s important to note that only the person listed on the title record can sign the form.
Do not simply ask them to sign the form or remove the lien to obtain their signature. This approach is unlikely to be successful because they have other things to do in their life. Instead, make it easy for them by filling out the form and preparing all the necessary documents. Mail everything to them in an old-fashioned envelope with an arrow sticker indicating where they should sign. Include a return envelope with your name, address, and a stamp.
By doing this, all they need to do is sign their name, place the form in the return envelope, and drop it in the mailbox. If you take this approach, your chances of resolving the title problem are good.
Most people are willing to help solve your title problem, but you need to make it easy for them. If you start making demands, cop an attitude, or call them instead of sending the required documents in the mail, your request will likely be rejected.
Put yourself in their shoes: if someone called you out of the blue and demanded that you fix their title problem, you would probably be reluctant to help. Instead, take the time to do the work for them. Fill out the form, include a professional letter, and send everything in an envelope. This approach is less intrusive and more likely to elicit a positive response.
In the letter, explain that you are trying to remove the car from their name to eliminate any liability for them. Most people are willing to help if they understand that you are looking out for their best interests. However, it’s important to note that this method may not always work. They might throw away the letter or not want to help you for other reasons.
The second method is to obtain a court order title, which may sound complicated, but it’s not as complicated as living without a title. The truth is, the title will not magically appear on your desk one day, so it’s essential to take action.
To obtain a court order title, you need to file three forms with the court in the county where you reside. You do not need to travel to other states like Vermont. The forms you need to file are a petition for ownership, a letter of non-interest, and an affidavit of facts. Once you have signed the forms, you need to submit them to the local court in your county, where they will give you a date for the hearing.
After you submit the forms, the court may ask you to provide additional documents, such as a copy of your license, a bill of sale, or a receipt. While this process may seem complicated, it is a viable option for obtaining a court order title.
Assuming that the vehicle is legitimate, with no liens, salvage, back taxes, or other issues, and you are not trying to do anything underhanded, obtaining a court order title will result in a judgment of ownership that legally makes you the vehicle’s owner.
This judgment of ownership allows you to go over the DMV’s head and obtain a title by presenting the document to the DMV directly. However, some people may feel that they shouldn’t have to go to these lengths to obtain a title, and that’s understandable.
But the truth is, you will not have a title until you take action to solve the problem. Obtaining a court order title is not as difficult as it may seem, and it is a viable option for those who are struggling to obtain a title through traditional means.
Many people wonder if they need an attorney to obtain a court order title. The truth is, you do not need an attorney, and our website provides instructions on how to obtain one. You won’t even need to go to court most of the time. In fact, courts try to avoid having people come in as much as possible, even in full-blown divorce cases or lawsuits. They prefer mediation, negotiation, or arbitration to avoid clogging up their courtroom.
If you have a simple case like a court order title, the court will try to handle everything remotely, but sometimes, they may ask you to come in to pick up your judgment or swear under oath that you are making true statements.
Don’t overlook the court process as a way to bypass the aggravation and runaround you get from the DMV. You can short-circuit the DMV process by going through the court process, which is straightforward and easy to understand.
The third method is to obtain a surety bond title. Some people may hesitate to use this option because they think it costs too much or won’t get a title for three years. However, the process is usually streamlined in most states. While there are a few hoops to jump through, our website provides instructions on filling out the necessary forms and signing the required affidavits.
The surety bond cost is not excessive, usually only costing around $100 or $200, depending on the car’s value. After submitting the forms and affidavits to the state, you will receive a bonded title that allows you to move forward.
It’s important to note that not every state allows for surety bond titles, with around 14 states not offering this option. It may be worth considering if you live in a state that allows for surety bond titles. These are the three methods we recommend for resolving difficult title situations.
Some people ask if they can use the Vermont loophole, but it’s not as simple as it sounds. This method requires dealing with Vermont and your home state, which can be complicated. First, you must get paperwork from Vermont and then hope your state accepts it.
Another issue with this method is the high sales tax charged by Vermont, which is 6% of the book value, not the sale price or the car’s condition. This means that even for a car worth $12,000 or $13,000, you could end up paying close to $1,000 in sales tax. It doesn’t matter what you think the car is worth; it’s the book value that counts. Even classic or older cars have a book value of nearly $10,000.
If you decide to use this method, you must also pay registration fees to Vermont and your home state. Moreover, you will need to bring the out-of-state vehicle to your home state, which might require an inspection. Overall, the Vermont loophole is not as simple as it appears and can be costly and time-consuming.
It’s essential to understand that you can’t use the Vermont license plate on your car and drive around with it, as it’s invalid. While it may be a valid plate and registration for you, it’s not valid for use in your state as a resident. You’re required to register your car in your state, so don’t use it to evade inspection or for any illegal purposes. If you do, you could get into serious trouble and end up spending more money in the long run. In fact, many people have their cars towed for misusing the Vermont plates. It’s important to use the Vermont loophole for its intended purpose and not to try to get out of anything in your state, such as a smog inspection.
It’s important to note that claiming an abandoned vehicle is not a “finders keepers” situation in most states. Just because you find a vehicle that appears to have been abandoned, it doesn’t mean you automatically get to keep it. In fact, most of the time, what people consider abandoned is not actually abandoned. If someone sold the vehicle to you or allowed you to store it, it’s not abandoned. The term “abandoned” usually means that nobody wants the vehicle and has been left unclaimed for a long time. If you file paperwork claiming an abandoned vehicle, the state might seize it and auction it off. This would void your claim to the vehicle. If you have a bill of sale or proof of proper transfer, don’t claim the vehicle as abandoned, as you might be waiving your rights to it. So, it’s essential to be very cautious about abandoned vehicles.
Another issue that may arise is a mechanic’s lien. If you are a licensed automotive facility, you can place a mechanic’s lien on a vehicle. However, you must have a repair order signed by the owner, legitimate repair bills, and proper documentation. It’s important to have a license to do business; with one, you can file a mechanic’s lien. Don’t be tempted to use a friend’s license to do it, as it will eventually be caught. The DMV audits mechanic’s liens to catch fraudulent activity. They will revoke the title and hold the person accountable if they discover that the lien was illegitimate. You can also opt for a civil lien instead.
Alternatively, a civilian can claim vehicle ownership through a civil lien, essentially a court order title. This process is actually easier than a mechanic’s lien and involves submitting a court order to claim ownership. It’s important to note that these civil liens must be legitimate and not fraudulent, as the DMV is aware of the potential for fraud and may take action against illegitimate claims.
Overall, a court order title or civil lien is a good alternative to a mechanic’s lien and may save time and effort, as there are fewer requirements to satisfy.
We provide you with all the information you need to make an informed decision. You can do it yourself or choose to use our services to assist you with your title. If you order from us, we recommend that you take the time to read through the process to understand exactly how your title will be obtained. You don’t have to use our services, but if you do, you should know how your title will be produced. It’s important to avoid surprises when you are hiring someone to get your title for you.
Remember that you can do all of these methods yourself for free, without having to pay anyone to get a title. If applicable, you only need to pay the state the necessary title fees and taxes. No title company, including us, has any special authority or ability to do something that you can’t do yourself. While we may know methods and information you might not be aware of, we can’t do anything magical or extraordinary. So, keep in mind that a title company cannot get you a title by doing something that you couldn’t do on your own. It might be convenient to pay someone to handle the process for you, but no extra authority is involved.
For additional information and assistance, order your title document preparation service, visit our YouTube channel for step-by-step instructions, schedule a vehicle title consultation with one of our title experts, or email our help desk at [email protected].
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