Car loans and possession of the title

[Anonymous]

I have a question.  I have 3 car loans.  When I refinanced them, somehow, I was sent 2 of the 3 titles, and they are marked paid in full.  Legally, what does that mean?  If I am in possession of a car title marked paid in full, does that mean I'm not liable for the loan on that vehicle?  I'm not trying to "weasel out" of anything... I've been paying for them all faithfully.  But someone posed that question to me, saying that since I had titles for 2 of them saying PAID, then I own them, free and clear.  Is this true?  Does anyone know the legality of this?  Shouldn't the lending institution have possession of the title(s) as collateral on my vehicle(s)?  If they have no title, what is their position?

Thanks in advance,

Jennifer Z

[Anonymous]

Did you REFI using another auto loan company or a  debt consolidation from a bank or HELOC?  If it is considered an auto loan the lender should not send you the titles until the balances are paid off.  But if you were to get a personal loan from a bank or use a HELOC then the cars would be considered paid in full and they original lender would send you the title. 

In my experience when I was 16 my mother purchased my first car by writing a check to the dealer using her HELOC check book.(I then made payments to her)  The car was then paid in full and she was sent the title.  She gave it to me for safe keeping which was a bad idea because when I turned 18 I went out and purchased a new car without telling her.  Since I already owned the title when I traded in the car she bought me I just signed it over and drove away in my new car.  This time I used an auto loan in my name because my mother had helped me establish my credit since I was 16.  So I now had to make payments for my new car and continue to pay her for a car I no longer had.  Yeah I was stupid, but you are only young once.  Down the road I made another mistake by defaulting on the newly acquired auto loan and had it REPO'd.  From that day on I learned my lesson the hard way and payed for it.  It's been 5 years and i'm still in the rebuilding process.

Sorry to get off the subject but maybe that helped to answer your question.

[Anonymous]

I did a refi on all 3 cars, each a separate loan, each an auto loan.  These aren't personal loans or LOC loans, etc.  So, knowing that, what does it mean if I have possession of the titles for 2 of the vehicles, and they are marked paid in full?  Why was I sent the titles for 2 of the cars instead of the bank where I refi'ed?  Does my possession of the titles mean that I own them now?  What is the legal implications for me and for the bank?