How do you put a lien on a car?

[LadyGT]

I need some legal advice about how to begin a lien on my daughter's car as protection for my husband and me as well as my daughter.

My 19 y/o daughter owes me money for car repairs, etc, that she has incurred over the past two years. She had gotten married a month or so ago to a man she knew less than 9 weeks and has not made any payments as promised. I just had her sign an agreement today as to what she owes and promises to repay the loan. Three things can happen: the car is totalled or the husband talks her into selling it or she just doesn't pay us back. We want her to follow through with her promise. It's the principal here.

There is a long story behind this but all is good so far. If she doesn't make payments on the outstanding balance, how do I go about and getting a lien on the car? I have the pink slip and other important documents because she is not living in a home of her own so I am not just about the money.

Down the road, in case I need to put a lien on this vehicle, where do I start? Get the document she just signed notarized and take it to DMV and send a copy to the insurance company? On the pink slip there is something saying about a lien but not sure what to do with it.

Anybody out here with this type of experience?

Denise

[CooL-NeWeLL]

Re: How do you put a lien on a car?

I do lien sales for my company in CA. If your in another state im not sure on their laws or if there is a difference. The main question is who the owner on the title. If the car is under your name you can take the car and sell it, but if you wrote some kind of contract between you two you would have to make sure you can prove she broke the contract. If you just put she owes you x amount of $, but didnt put a time frame that she has to payback the loan or if you didnt put in the contrat that you would sell the car after a certain amount of time without payment or any detail a judge could side with her if she sued you or somthing. In order to sell it under your name you just need to sign it and sign a bill of sale, but if it is her name you have to have her sign off on the title and a bill of sale in order to sell it. If her name is on the title and you want to do a lien to payback repairs in CA i think the maximum you can put on the lien for repairs is $700 and you could charge for repairs and the cost of the lien $70-$100. If you want to do one you can usally call a local private registration office that does vin verifications and other services, but in order to do the lien you have to have possession of the car, and they will do all the work sending notices to her and DMV. Now depending on the value of the car if it is valued more than $4000 it could take minumum 120 days but i have had them take up to 150. If the car is valued less than $4000 it only takes 30 day from the day the notices are mailed out, but either way she could deny the lien wich puts a stop on the lien then you would have to sue her in court. Then after the ok from DMV the lien company will give you paperwork in your name so you can sell the vehicle, but it is not a title your not the legal owner you just become a lienholder if you wanted to put it in your name you would have to register the car in your name with the lien paperwork wich in CA includes a smog check if its newer than 1975. So as you can see its not to cut and dry.

[HoosierGTA]

Re: How do you put a lien on a car?

Problem here ( and I don't know anyting about your relationship ) but it doesn't sound as though you trust her . You know the circumstances ,we don't need to . Lots of family and friends have been lost over money that couldn't be paid back. It's not worth it. Don't loan money that you cannot afford to loss. It's just like gambling. If she can't pay back call it and EXPENSIVE wedding gift and never do it again.


P.S. buy her a book by DAVE RAMSEY Financial Peace I'd be a good read for everybody.

[Schtauffer]

Re: How do you put a lien on a car?

Each state has vastly different regulations about leins and titles on vehicles, so the best place to start would be a local notary. Although you already had her sign the "contract" you prepared yourself, a notary will likely ask that you both sign another document stating essentially the same thing, but will require that your signatures be made in the prescence of the notary. Just as was noted by CooL-NeWeLL, you will want to make sure you specify the terms of repayment. Anything open ended without a final date the loan should be satisfied with regular timely payments won't hold up in court. A notary will never legalize a signed document without witnessing the signature. A notary or tag service should then be able to point you in the right direction to get your name listed on the title, just the same as a bank would be listed if they had provided the financing. Once you are listed as lienholder on the title, then the company your daughter has the car insured with should add you as "exception to ownership", which will include at least your name and address. They may not do it without your daughter's authorization. That title on her policy will ensure that you receive copies of her insurance at every renewal to prove she carries coverage and would also garauntee funds would first go to you in the event the vehicle were totaled.

[LadyGT]

Re: How do you put a lien on a car?

I just want her to step up to the plate and pay us the money because it's the right thing to do. She wanted to be an adult so I treat and expect her to act like one. Since I don't know what kind of husband she has, I don't want her or us to be taken advantage of.

I appreciate the info given.

[Brian Lohnes]

Re: How do you put a lien on a car?

Each state has vastly different regulations about leins and titles on vehicles, so the best place to start would be a local notary. Although you already had her sign the "contract" you prepared yourself, a notary will likely ask that you both sign another document stating essentially the same thing, but will require that your signatures be made in the prescence of the notary. Just as was noted by CooL-NeWeLL, you will want to make sure you specify the terms of repayment. Anything open ended without a final date the loan should be satisfied with regular timely payments won't hold up in court. A notary will never legalize a signed document without witnessing the signature. A notary or tag service should then be able to point you in the right direction to get your name listed on the title, just the same as a bank would be listed if they had provided the financing. Once you are listed as lienholder on the title, then the company your daughter has the car insured with should add you as "exception to ownership", which will include at least your name and address. They may not do it without your daughter's authorization. That title on her policy will ensure that you receive copies of her insurance at every renewal to prove she carries coverage and would also garauntee funds would first go to you in the event the vehicle were totaled.

FYI....this guy is not the guy you want to square off with on the People's Court. ;D

My man's got skills!

Brian

[KeithTurk]

Re: How do you put a lien on a car?

I'm going to fly with Dan on this one Brian.... when it comes to family... I don't have contracts, liens, or broken promises... I just have family...

Keith

[Robert1320]

Re: How do you put a lien on a car?

Problem here ( and I don't know anyting about your relationship ) but it doesn't sound as though you trust her . You know the circumstances ,we don't need to . Lots of family and friends have been lost over money that couldn't be paid back. It's not worth it. Don't loan money that you cannot afford to loss. It's just like gambling. If she can't pay back call it and EXPENSIVE wedding gift and never do it again.


P.S. buy her a book by DAVE RAMSEY Financial Peace I'd be a good read for everybody.

X3

Seems like something bigger than money.

I need some legal advice about how to begin a lien on my daughter's car as protection for my husband and me as well as my daughter.

My 19 y/o daughter owes me money for car repairs, etc, that she has incurred over the past two years. She had gotten married a month or so ago to a man she knew less than 9 weeks and has not made any payments as promised. I just had her sign an agreement today as to what she owes and promises to repay the loan. Three things can happen: the car is totalled or the husband talks her into selling it or she just doesn't pay us back. We want her to follow through with her promise. It's the principal here.

There is a long story behind this but all is good so far. If she doesn't make payments on the outstanding balance, how do I go about and getting a lien on the car? I have the pink slip and other important documents because she is not living in a home of her own so I am not just about the money.

Down the road, in case I need to put a lien on this vehicle, where do I start? Get the document she just signed notarized and take it to DMV and send a copy to the insurance company? On the pink slip there is something saying about a lien but not sure what to do with it.

Anybody out here with this type of experience?

Denise

This has been going on for two years and now it is an issue.
An issue in the last 9 weeks maybe....

[KeithTurk]

Re: How do you put a lien on a car?

Same Vibe Robert...

Should be fairly obvious once she goes back and reads what she wrote...

Keith

[Robert1320]

Re: How do you put a lien on a car?

I'm not pick on Denise, just replying to what I read.

Momma's feeling the empty nest and can't do anything about it.
Looks like a control thing. Kids have to grow up, she did and her baby is too........

[Schtauffer]

Re: How do you put a lien on a car?

She did ask for legal advice...

Personal advice from me would be to forget the money and make peace in the family. Its not worth it, even if it is tens of thousands of dollars.

[KeithTurk]

Re: How do you put a lien on a car?

Gotta tell ya Dag... your answer was impressive though...

Keith

[LadyGT]

Re: How do you put a lien on a car?

There is a lot more to this but the major thing is that I want her to learn to keep her word and become accountable for her actions. I have two other teenagers behind her that are of driving age so I am not going through empty nest syndrome.

I see that I am being wrongly judged but believe what you want.

[Schtauffer]

Re: How do you put a lien on a car?

Gotta tell ya Dag... your answer was impressive though...

Keith

The beauty and the brains in my household typed that up, not me. Sorry, I'm not that smart.

Sounds like a stressful time for you, LadyGT. Feeling for you, here.

[IndyShiftman]

Re: How do you put a lien on a car?

I would try and find a Lien company in your area and ask them.
I have had to get several liens in the past and I deal with the same company every time.
Send them any paperwork and they ask that the state police run a VIN check and have the officer sign a form. They also ask if there are any charges owed including storage.
It takes a 3-4 weeks and I think it cost me $150.

I don't know if it makes any diff if it's a business or private individual.