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Auto Loan - Charged off - Can I obtain the title?

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Anonymous
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Auto Loan - Charged off - Can I obtain the title?

Question is separated in next paragraph if you don’t want to read my short life story on my credit. Okay I was going through a rough time in my personal life, I had about a 700 credit score when I was 21 so I had numerous loans/credit cards open; however, I found myself in a hole where I began maxing out credit cards, stopped paying loans/credit, etc. My car loan was through a bank, they never came for my car (not sure why but am extremely happy I still have it) and I am just now finally get back on my feet where I need to be. I have the best paying job I’ve ever had so the rebound is looking very well.

My main question is: if the bank who had the lein on my vehicle had charged off the account as a lost cause, could I obtain the title now? I still have the vehicle and due to the account no longer being an auto loan but an account with the collections agency, I feel the title wouldn’t be tied to the bank anymore. The reason I’m asking is because I want to pay off this loan and if I could sell the car with the tittle, I could get much more money out of it than the auction would make if it just forfeit the vehicle to them.
3 REPLIES 3
Anonymous
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Re: Auto Loan - Charged off - Can I obtain the title?

No.

Message 2 of 4
DeeBee78
Valued Contributor

Re: Auto Loan - Charged off - Can I obtain the title?


@Anonymouswrote:
Question is separated in next paragraph if you don’t want to read my short life story on my credit. Okay I was going through a rough time in my personal life, I had about a 700 credit score when I was 21 so I had numerous loans/credit cards open; however, I found myself in a hole where I began maxing out credit cards, stopped paying loans/credit, etc. My car loan was through a bank, they never came for my car (not sure why but am extremely happy I still have it) and I am just now finally get back on my feet where I need to be. I have the best paying job I’ve ever had so the rebound is looking very well.

My main question is: if the bank who had the lein on my vehicle had charged off the account as a lost cause, could I obtain the title now? I still have the vehicle and due to the account no longer being an auto loan but an account with the collections agency, I feel the title wouldn’t be tied to the bank anymore. The reason I’m asking is because I want to pay off this loan and if I could sell the car with the tittle, I could get much more money out of it than the auction would make if it just forfeit the vehicle to them.

Charge off is simply to get the debt off of the lender's books, not that they have forgiven the debt. The bank most likely still has a lien on the title, and you will need to have them sign a lien release before you can obtain it. They probably won't do this without you settling your debt obligation, which could be a payment in full, or a negotiated amount. 

Message 3 of 4
Anonymous
Not applicable

Re: Auto Loan - Charged off - Can I obtain the title?

You can call them and settle for less and they can release the vehicle title. See if they're willing to do anything. Don't be afraid to ask for half settlement, to them it's already been written off so it's jus money for them.
Message 4 of 4
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