Purchased a car, title showed up in the mail with only my name on it...

[jayfico1]

How is this even possible? I recieved a call maybe 4 months later from the original dealership i bought the car from and was told the DMV forgot or made a error putting the lienholder on the title. 

Ive already sent the documents back to the lienholder they needed to fix it, but in this situation, are you able to sell the car with the title in your name only while its being financed? How does this even happen out of curiousity. 

[sccredit]

Theoretically, yes you could sell the car but the legal mess it would bring is not worth it. It's a simple mistake, most likely by the dealership when they were titling the vehicle.

[chiefone4u]

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@jayfico1 wrote:

How is this even possible? I recieved a call maybe 4 months later from the original dealership i bought the car from and was told the DMV forgot or made a error putting the lienholder on the title. 

Ive already sent the documents back to the lienholder they needed to fix it, but in this situation, are you able to sell the car with the title in your name only while its being financed? How does this even happen out of curiousity.

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 I refinanced earlier this year and the title was released in my name and mailed to me.

I knew going in that would happen since BECU doesn't have an electronic relationship with the state of Idaho. I was given 60 day's to submit the title with them listed as #1 leinholder or the loan would be converted into a personal loan at 8.9% apr instead of the 3.7% I signed for.

While the above situation isn't the same as yours, perhaps it was less mistake and more the bank couldn't receive a digital title?

[jayfico1]

I called my bank and they flat out told me i dont have to send any papers in, and in so many words, its a personal loan lol.

[Loquat]

Some states allow for lien holders to be placed electronically. Nonetheless, lien or no lien release, if you sell the card while you still owe on it you'll find yourself in way more legal mess than you care to be in.

[jayfico1]

How so? Who would find out if youre still making the payments on time and the lien isnt showing when the next person registers it at the DMV. Not saying im doing any of this which im not.

[Loquat]

Without getting too far into the weeds, while your title may be without the lender listed but I'd be willing to bet that you purchase order has the lender listed as the lien holder.

Secondly, for you to sell the car to another person you'd have to rightfully be the owner, technicalities won't matter one bit. Don't think for a minute that you're the first one who has a title with the lien holder not being properly placed.

Third, for the new owner to register the vehicle he or she would need to provide insurance. Since you still owe on the car you're legally obligated to carry full coverage insurance.

So this other person adding insurance to a car that isn't legally theirs and you knowingly doing so places you right in line for insurance fraud.

I could go on and on. I'm happy to hear that you're not thinking of playing this game because it's a foolish one for sure and would end up terribly for anyone trying to do so.

You'd be in trouble with the original lender, insurance fraud, possibly theft by deception by the person you sold it to since you knowingly sold a vehicle that you had no legal owner ownership to. Doing such is just a bad idea.